Natural Gas: Wall Street beginning to wake up

[dan_s]

Phil Flynn on Ngas in his 9/21 morning report:

"In natural gas we are seeing a surge and the warnings about supply that I spoke about in my webinar are now coming to fruition. With record demand predicted in the coming weeks, along with talk of falling production, our surplus going into winter will continue to diminish. With talk that US production is dipping below 70 bcf a day and the surplus dwindling, traders are starting to worry about the amount of supply we will have going into winter. When we started the refill season, supply was 54% above average and that has fallen to just 9%. With record demand expected we could see supply tightness start to happen if we get a cold winter. The hedge funds are getting long as they are seeing the writing on the wall."

As I have been telling you for over a month, Wall Street will not take a look at natural gas until the Fall. Well, here we are and Ngas is already trading over $3.00/mmbtu.

It is VERY IMPORTANT that you know the production mix (crude oil, natural gas & NGL) of all of your upstream holdings. I break it our at the bottom of each companies forecast model.

[dan_s]

NYMEX strip for Q1 2017 closed over $3.40/mmbtu today. My call of $3.50 in Q1 is now looking too conservative.

[dan_s]

Even Jim Cramer is starting to get what's happening.

https://www.thestreet.com/story/1374748 ... _ven=YAHOO

Top Gassers: AR, EQT, GPOR, RRC < You can find updated profiles on these companies on the EPG website.