Natural Gas Storage Report - May 25

[dan_s]

Working gas in storage was 2,444 Bcf as of Friday, May 19, 2017, according to EIA estimates. This represents a net increase of 75 Bcf from the previous week. Stocks were 371 Bcf less than last year at this time and 241 Bcf above the five-year average of 2,203 Bcf. At 2,444 Bcf, total working gas is within the five-year historical range.

5-year average for this week is 92 BCF. At the rate this is going, ngas storage will be below the 5-year average by end of Q3

[Duguyisheng]

In general, your weekly podcasts paint a rosier picture for NG than for oil with fewer uncertain variables. Do you have any thoughts on why the NG stocks in the sweet 16 are doing just as poorly, if not moreso, as the oil ones?

[dan_s]

At this time of year Wall Street is not focused on natural gas. I have gotten reports from Credit Suisse and Wells Fargo that seem to be catching on to the fact that the U.S. gas market is going to be much tighter this year. The energy sector is just out of favor these days. I just updated the Sweet 16 summary spreadsheet. All 16 companies will report good EPS and CFPS this year even if commodity prices stay exactly where they are today.

Read the profiles for AR, GPOR and RRC. They are all going to report strong production growth. AR has more than 100% of their gas hedged at very good prices. GPOR will draw more attention if they report strong results in SCOOP.