Dan, curious why you continue to recommend companies with high NG exposure when you also
say that NG prices will be weak after this winter?? ( SM, UNIT, VNR as examples )
NG prices
Re: NG prices
My forecast for SM assumes low gas prices. Most of their revenues come from liquid sales.
Unit is also producing a lot more liquids and rig day rates are going up. Take a look at my forecast.
VNR has a very high percentage of their gas hedged at decent prices for 2014 and 2015. I really like their last two acquisitions.
You can find the oil and gas prices I am using for each company at the bottom of each forecast. They all assume low gas prices will continue.
Unit is also producing a lot more liquids and rig day rates are going up. Take a look at my forecast.
VNR has a very high percentage of their gas hedged at decent prices for 2014 and 2015. I really like their last two acquisitions.
You can find the oil and gas prices I am using for each company at the bottom of each forecast. They all assume low gas prices will continue.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: NG prices
Plus, I do think there is a good chance natural gas prices spike this winter. Joe Basardi is forecasting an early start to winter with a colder than normal November.
There is just so much associated gas from the Eagle Ford and Permian Basin coming online that I think gas prices will be under a lot of pressure in 2015. A very cold winter could help, but I don't see a lot of hope for gas until 2016 when LNG exports ramp up.
There is just so much associated gas from the Eagle Ford and Permian Basin coming online that I think gas prices will be under a lot of pressure in 2015. A very cold winter could help, but I don't see a lot of hope for gas until 2016 when LNG exports ramp up.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group