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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (46240)	1/19/2012 3:59:53 PM
From: Spekulatius	Respond to of 78525

>>CJES service contracts cover about 60% oil and 40% NG (it may even be less NG). I was surprised to see this mix as I thought it was close to 100% NG. << It does not matter, even if 100% of their contracts were related to oil. The equipment and processes to use for pressure pumping fracking are largely he same with oil and NG, which means that glut in said capacity is affecting them no matter what. CJES and other companies are benefiting from tight capacity and my feel is that this is about to change, and quite possibly resulting in a glut that is going to swamp all players in this commodity service space.