Outlook for Natural Gas

[dan_s]

I just got a new report from Wells Fargo Equity Research that (finally) seems to get what I have been saying for months.

"We are reiterating our bullish natural gas price forecast for
the remainder of 2017, which currently stands 9% above the Street.
The market remains undersupplied by 2+ Bcf/d, and a trifecta of recent
developments, including a hot summer weather outlook, northeast
pipeline delays, and Mexican infrastructure timing, not only supports
our call for higher summer prices, but also an extended rally into the
fall and potentially winter. Regarding stocks, we continue to believe
there is upside based on our $3.25/MMbtu long-term price, which is
15% above what shares are discounting (currently $2.83/MMbtu).
Moreover, the gap between the 2-year strip and the price discounted in
stocks is the widest it has been in years, leading us to believe this is a
good entry point for shares. We continue to favor Outperform rated
COG ($23.82), RICE ($21.93), and RRC ($25.16) and believe there may
be upside in Market Perform rated CHK ($5.54) and SWN ($7.24)."

If you'd like to read the full report, send an e-mail to me at dmsteffens@comcast.net