Oil & Gas Prices - Sept 24
Posted: Thu Sep 24, 2020 8:37 am
Opening Prices:
> WTI is down 34c to $39.59/Bbl, and Brent is down 32c to $41.45/Bbl.
> Natural gas (OCT futures contract) is up 10.3c to $2.228/MMBtu.
Ignore the ngas price above. The wild ride for the October NYMEX futures contract over the last two weeks is just the result of several funds being forces to close out their long positions because they cannot take physical delivery. This is just a mini version of what caused the front month WTI contract to go negative in May. This winter we are going to see much higher natural gas prices.
At the time of this post, the November HH contract is trading at $2.84 and the December contract is trading at $3.26.
Comstock Resources (CRK) is trading at a DEEP DISCOUNT to my valuation.
> This company is backed by the wealth of Jerry Jones, owner of the Dallas Cowboys.
> It is free cash flow positive this year and will be extremely profitable in 2021 if their realized gas price is just $2.50/mcf.
> It is almost a pure play on the Haynesville Shale, which has the top netback gas prices in the country.
> ~98% of Comstock's production is natural gas and NGLs.
> WTI is down 34c to $39.59/Bbl, and Brent is down 32c to $41.45/Bbl.
> Natural gas (OCT futures contract) is up 10.3c to $2.228/MMBtu.
Ignore the ngas price above. The wild ride for the October NYMEX futures contract over the last two weeks is just the result of several funds being forces to close out their long positions because they cannot take physical delivery. This is just a mini version of what caused the front month WTI contract to go negative in May. This winter we are going to see much higher natural gas prices.
At the time of this post, the November HH contract is trading at $2.84 and the December contract is trading at $3.26.
Comstock Resources (CRK) is trading at a DEEP DISCOUNT to my valuation.
> This company is backed by the wealth of Jerry Jones, owner of the Dallas Cowboys.
> It is free cash flow positive this year and will be extremely profitable in 2021 if their realized gas price is just $2.50/mcf.
> It is almost a pure play on the Haynesville Shale, which has the top netback gas prices in the country.
> ~98% of Comstock's production is natural gas and NGLs.