Discovery Energy's Customers have recorded a growth in their cost of revenue by 61.41 % in the 4 quarter 2022 year on year, sequentially costs of revenue were trimmed by -1.49 %, for the same period Discovery Energy Corp
Discovery Energy's Comment on Sales, Marketing and Customers
The petroleum industry has been characterized historically by crude oil and natural
gas commodity prices that fluctuate (sometimes dramatically), and supplier costs
can rise significantly during industry booms. For example, crude oil and natural
gas prices increased to historical highs in 2008 and then declined significantly
over the last two quarters of 2008. After this period, prices generally improved
steadily with occasional reversals, without returning to historical highs, although
they had generally been higher than pre-2007 levels. A several price decline started
in June 2014 when the price of Brent oil was above US$110 per barrel and has continued
to date to remain at depressed level, with public Brent quotes in the middle of
May 2017 of approximately US$50 per barrel. Crude oil and gas prices and markets
are likely to remain volatile in the future. Crude oil and natural gas are commodities
and their prices are subject to wide fluctuations in response to relatively minor
changes in supply and demand for oil and gas, market uncertainty, and a variety
of additional factors beyond our control. Those factors include:
international political conditions (including wars and civil unrest, such
as the recent unrest in the Middle East);
the domestic and foreign supply of oil and gas;
the level of consumer demand;
weather conditions;
domestic and foreign governmental regulations and other actions;
actions taken by the Organization of Petroleum Exporting Countries (OPEC);
the price and availability of alternative fuels; and
overall economic conditions.
Lower oil and natural gas prices may not only decrease our revenues on a per
unit basis, but may also reduce the amount of oil and natural gas we can produce
economically, if any. A sustained decline in oil and natural gas prices may
materially affect our future business, financial condition, results of operations,
liquidity and borrowing capacity, and may require a reduction in the carrying
value of our oil and gas properties. While our revenues may increase if prevailing
oil and gas prices increase significantly, exploration and production costs
and acquisition costs for additional properties and reserves may also increase.
We may or may not enter into hedging arrangements or use derivative financial
instruments such as crude oil forward and swap contracts to hedge in whole or
in part our risk associated with fluctuations in commodity prices.
We do not expect to refine any of our production, although we may have to treat
or process some of our production to meet the quality standards of purchasing
or transportation companies. Instead, we expect that all or nearly all of our
production will be sold to a relatively small number of customers. Production
from our properties will be marketed consistent with industry practices. We
do not now have any long-term sales contracts for any crude oil and natural
gas production that we realize, but we expect that we will generally sell any
production that we develop pursuant to these types of contracts. We do not believe
that we will have any difficulty in entering into long-term sales contracts
for our production, although there can be no assurance in this regard.
Discovery Energy’s Comment on Sales, Marketing and Customers
The petroleum industry has been characterized historically by crude oil and natural
gas commodity prices that fluctuate (sometimes dramatically), and supplier costs
can rise significantly during industry booms. For example, crude oil and natural
gas prices increased to historical highs in 2008 and then declined significantly
over the last two quarters of 2008. After this period, prices generally improved
steadily with occasional reversals, without returning to historical highs, although
they had generally been higher than pre-2007 levels. A several price decline started
in June 2014 when the price of Brent oil was above US$110 per barrel and has continued
to date to remain at depressed level, with public Brent quotes in the middle of
May 2017 of approximately US$50 per barrel. Crude oil and gas prices and markets
are likely to remain volatile in the future. Crude oil and natural gas are commodities
and their prices are subject to wide fluctuations in response to relatively minor
changes in supply and demand for oil and gas, market uncertainty, and a variety
of additional factors beyond our control. Those factors include:
international political conditions (including wars and civil unrest, such
as the recent unrest in the Middle East);
the domestic and foreign supply of oil and gas;
the level of consumer demand;
weather conditions;
domestic and foreign governmental regulations and other actions;
actions taken by the Organization of Petroleum Exporting Countries (OPEC);
the price and availability of alternative fuels; and
overall economic conditions.
Lower oil and natural gas prices may not only decrease our revenues on a per
unit basis, but may also reduce the amount of oil and natural gas we can produce
economically, if any. A sustained decline in oil and natural gas prices may
materially affect our future business, financial condition, results of operations,
liquidity and borrowing capacity, and may require a reduction in the carrying
value of our oil and gas properties. While our revenues may increase if prevailing
oil and gas prices increase significantly, exploration and production costs
and acquisition costs for additional properties and reserves may also increase.
We may or may not enter into hedging arrangements or use derivative financial
instruments such as crude oil forward and swap contracts to hedge in whole or
in part our risk associated with fluctuations in commodity prices.
We do not expect to refine any of our production, although we may have to treat
or process some of our production to meet the quality standards of purchasing
or transportation companies. Instead, we expect that all or nearly all of our
production will be sold to a relatively small number of customers. Production
from our properties will be marketed consistent with industry practices. We
do not now have any long-term sales contracts for any crude oil and natural
gas production that we realize, but we expect that we will generally sell any
production that we develop pursuant to these types of contracts. We do not believe
that we will have any difficulty in entering into long-term sales contracts
for our production, although there can be no assurance in this regard.
Sources:
Discovery Energy Corp’s official press releases and regulatory filings; CSIMarket.com’s market research; and the financial filings and press releases of other companies cited in this report.
Updated on:
Focus of this report: Discovery Energy Corp’s corporate clients.
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