NGL Prices

[dan_s]

A major cold wave is going to push deep into the Midwest this weekend. This is an area that consumes a lot of propane for space heating and cooking. Propane is one of the largest components of the NGL mix for most upstream companies. We have two small-caps that will get a significant revenue boost if NGL prices go higher.

Sanchez Energy (SN) and SM Energy (SM).

You can find the production mix of each company in our model portfolios by finding their forecast model on the EPG website. I show the production mix at the bottom of each forecast model.

We recently published updated profiles on SM and SN.

Now is a great time to add more exposure to NGLs.

Antero Resources (AR) is the largest producer of NGLs in the Marcellus/Utica play. RRC is a close 2nd.