Winter Forecast Update

[dan_s]

http://www.weatherbell.com/final-winter-forecast

The winter forecast at the link above is now very bullish for natural gas prices. If the ngas in storage falls below the 5-year average (expected to happen in January), we should see the front month NYMEX contract push over $4.00/MMBtu. A colder than normal February, could then push ngas over $4.50.

This will give all of our Sweet 16 a nice revenue boost. GPOR and RRC will get the most benefit. SM, EOG, DVN, NFX and XEC also sell a lot of gas and NGLs.

COLD in the Midwest will help propane prices.

[dan_s]

Take a look at the 10 day forecast for Chicago: https://www.wunderground.com/cgi-bin/fi ... cago%2C+IL

A week with several sub-zero nights in Chicago should translate to a 200+ Bcf draw from storage for the week.

Last winter, the last four weeks of December cause only a 200 Bcf draw from storage for the entire 28 day period. This year we should see 450 to 500 Bcf draw from storage for the last four weeks of December.