I feel that the pervasive bearish sentiment is most strongly supported by record production levels. Amidst steep reductions in rig count levels throughout 2023, most analysts—including yours truly—expected production to hold steady in the 100-102 BCF/day range for the rest of 2023. Instead, beginning in mid October, production abruptly trended higher and has averaged 105-106 BCF/day for the past week, up +4-5
We are plus 4-5 with record ng exports
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I say again, why can't these producers dial back production 5 %? The are just shooting themselves in the foot. Every name , on earnings call say they are targeting flat production. Well flat is too much. They should target a 10 % decline until prices improve. This industry keeps making the same mistakes over and over.
Then in a reaction to lower prices they will sell swaps at 2.50 , like CRK did, and miss the next bull move.
BTW, NG for the next 8 months are all in the 2's