"At 90% gas production, 98% gas reserves, a cash cost structure of around $3.00/Mcfe - about even with spot prices pre-basis, and no remaining hedges, GMXR is in a world of pain. I understand it gives them more time to attempt a liquids conversion by doing the exchange, but with the variability of results in the Niobrara, recent cost pressures in the Bakken and my expectations of continued pressure on the gas curve, the company may just be whistling past the graveyard."
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