I believe in 18 months the price of natural gas will begin to rise substantially. I also believe that in recognition of this the shares of "gassers" will start to move - and I think they already have - reference CHK.
Dan and all - what companies do you all see the greatest share price leverage to a nat gas price rise?
Thanks,
Bob
PS: I bet the 2012 Sweet 16 will be "gassey"!
Gas Price Leverage
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prince_jake_33
- Posts: 242
- Joined: Mon Apr 26, 2010 2:21 pm
Re: Gas Price Leverage
The Natural Gas Act will cause replacement of diesel by natural gas. TBoone says maybe 4 million bbls/day. Seems like it never happens though after lots of talk.
Re: Gas Price Leverage
The Sweet 16 companies that are most leveraged to natural gas are:
Cimarex (XEC)
Carrizo (CRZO)
EOG Resources (EOG)
Newfield Exploration (NFX)
Note: All of the above are in the S-16 because their 2011 capital spending is focused on increasing their liquids production.
Stone Energy (SGY) - I have decided to drop SGY from next year's S-16. Nothing wrong, I just need to make room for PMG.
FX Energy (FXEN) is a pure play on Polish gas, which BTW is selling for over $9/mcf today. All gas markets are regional.
TGA is the only S-16 company that is 100% oil.
Dan
PS: See the Sweet 16 Detailed Update on the website for details on each company and why I like them.
Cimarex (XEC)
Carrizo (CRZO)
EOG Resources (EOG)
Newfield Exploration (NFX)
Note: All of the above are in the S-16 because their 2011 capital spending is focused on increasing their liquids production.
Stone Energy (SGY) - I have decided to drop SGY from next year's S-16. Nothing wrong, I just need to make room for PMG.
FX Energy (FXEN) is a pure play on Polish gas, which BTW is selling for over $9/mcf today. All gas markets are regional.
TGA is the only S-16 company that is 100% oil.
Dan
PS: See the Sweet 16 Detailed Update on the website for details on each company and why I like them.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group