Winter warm up exposes my NG holding's

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Fraser921
Posts: 3095
Joined: Mon Mar 22, 2021 11:48 am

Winter warm up exposes my NG holding's

Post by Fraser921 »

Ar down almost 10 %
dan_s
Posts: 34928
Joined: Fri Apr 23, 2010 8:22 am

Re: Winter warm up exposes my NG holding's

Post by dan_s »

Winter is a LONG WAY FROM OVER. The recent pull back in natural gas prices is not going to have much impact on their Q4 results thanks to their hedges.

AR, EQT, RRC and CTRA are all likely to report some well freeze offs, but those are short term problems.
Dan Steffens
Energy Prospectus Group
ED_OSHEA
Posts: 7
Joined: Wed Jun 29, 2022 10:45 am

Re: Winter warm up exposes my NG holding's

Post by ED_OSHEA »

This pull back in oil & gas prices is a buying opportunity. After first joining Energy Prospectus I bought SBOW at $28, and watched it go $47, it is now at $27. I am a buyer and riding SBOW down and then back up. SBOW's PE is 1.45 and will be $50 again. The Swiss fund manager Felix Zulauf advises that for the foreseeable future the markets are a rollercoaster. I am buying low and selling high. Today I bought 600 shares of BOIL at $18.90. Boil's range last year was $18 - $140. Some time in 2023 Boil will be at $50 or better. At $50 I will sell calls at $60. If my shares are taken at $60 I will buy either RIO or DVN whichever is closest to the yearly low.

I love the quote from Lord Rothschild "Buy when there is blood in the street, even if it is your own". Warren Buffet quote "You pay a very high price in the stock market for a cheery consensus."

Happy Hunting

Ed OShea
dan_s
Posts: 34928
Joined: Fri Apr 23, 2010 8:22 am

Re: Winter warm up exposes my NG holding's

Post by dan_s »

Keep in mind that SBOW and all of the Sweet 16 are in MUCH BETTER SHAPE than they were a year ago.
> WTI oil price is actually higher than it was a month ago.
> Biden has stopped draining the SPR and must refill it.
> U.S. and OECD petroleum inventories are much lower than they should be.
> U.S. oil production has declined since the annual November peak (happens each year) and it will not get back to that level until sometime in Q2. Winter does impact oil production and Winter Storm Elliott shut in a lot of wells. A high percentage of Williston Basin (North Dakota) wells will remain shut-in.
> Oil supply from Russia will decline.
> OPEC+ has total control over the oil price. The cartel will not let Brent go under $80/bbl for long. All they need to do is announce a production cut and Brent will go up $10/bbl.

The recent pullback in HH gas prices will have only a minor impact on Q4 results for our gassers.
Dan Steffens
Energy Prospectus Group
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