Gas sees biggest 1-day price increase since 1990. Rigzone.
The continuing strength of oil prices has been impressive but the February 2022 NYMEX Henry Hub Natural Gas futures contract ‘takes the cake’ for surprises this week. Trading a just few thousand contracts in the final 30 minutes, prices skyrocketed from $4.85/MMBtu to near $7.35/MMBtu, resulting in a $6.265/MMBtu final settlement. It was the biggest one-day price increase since 1990, the inception year for the contract. The move had all the signs of a classic short-squeeze, and the sharks were probably circling in the water.
Global gas rally to kickstart long-stalled U.S. LNG projects. Reuters.
High global natural gas prices are breaking a two-year logjam of new U.S. liquefied natural gas (LNG) projects with at least three of the multibillion-dollar proposals likely achieving enough supply contracts to start construction this year, said developers and industry experts. A Louisiana project that received a green light in 2019 was the last wholly new U.S. plant to receive a go-ahead, benefiting from then-strong demand from China and utilities swapping to LNG from coal. A dozen others were stalled, first by the China-U.S. trade war and then by the COVID-19 pandemic and environmental concerns.
Natural-Gas futures spike in latest market turmoil. WSJ.
A wild spike in expiring natural-gas futures contracts on Thursday afternoon was the latest bout of extraordinary volatility that has whipsawed financial markets to start the year. Natural-gas futures for February delivery settled 46% higher, at $6.256 per million British thermal units, the largest one-day gain on record. More heavily traded futures for March delivery ended the day up 8.1% at $4.363. Futures for more distant deliveries moved similarly to March contracts in a rise that isn’t unusual for this time of year, when traders wager on the severity of winter weather and the demand it will create for the heating and electricity-generation fuel. Note: Bloomberg and NGI also reports.
Gassers are drawing more attention
Gassers are drawing more attention
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Gassers are drawing more attention
SilverBow Resources (SBOW) is the only "gasser" in our Small-Cap Growth Portfolio.
At the time of this post it was trading for $22.70. My current valuation is $74/share.
My recently updated forecast/valuation model for SBOW is sitting under the Small-Cap tab on the EPG website.
At the time of this post it was trading for $22.70. My current valuation is $74/share.
My recently updated forecast/valuation model for SBOW is sitting under the Small-Cap tab on the EPG website.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group