Energy Prospectus

Down another 5 %

Waha is negative 2

Much has been written about low natural gas prices at Henry Hub this year, and we at RBN have made our contributions to that discourse (see Fear and Loathing and Just In Time). Prompt month futures prices have been below $2.00/MMBtu for over two months now. While Hub prices at these levels certainly create challenges for producers, these prices pale in comparison to the bearishness in the Permian Basin where some producers are paying in excess of $2.00/MMbtu to have their gas taken away. According to pricing data from Natural Gas Intelligence (NGI), outright Waha cash prices averaged negative $2.39/MMBtu last week, putting spot prices in the basin nearly $4.00/MMBtu below Henry Hub (see bold pink line in chart below).

What a wonderful opportunity!

https://www.cmegroup.com/markets/energy/natural-gas/natural-gas.quotes.html#venue=globex

I think the saying is "the solution to cheap prices is cheap prices"

My RRC is up 16 % ytd, plus dividends and covered calls

37% in one year plus dividends and covered calls

I thought about selling then said why!! LNG Export build is coming, summer is coming, winter is coming and everything else.
Cheers.

Fascinating that natural gas price is in the toilet but Dutch TTF futures are up 50% from its lows on February 23rd. Can anyone explain this ?