MS lowers GPOR target to $7!

[GeraldR]

Also lowered long term NG price deck to $2.50 from $2.75.
That comes out of left field to me. But the hits just keep on coming.
A cold winter might put some egg on MS's face. Hope so.

[dan_s]

I saw the MS forecast. Note that they are talking about 2022+ on the gas prices. NO ONE knows what the gas price will be that far out. Yes, North America has massive natural gas reserves (a blessing), but demand for our gas is going higher and higher because it is so cheap compared to oil. By 2022 we will have export capacity of more than 20 Bcf per day and be using a lot more gas for power generation ourselves.

TO BE CRYSTAL CLEAR: I believe we will see much higher natural gas prices this winter. After March it will depend on how severe the winter is.

NOW: look at my forecast model for GPOR. The realized gas price that I'm using in my 2019 forecast is $2.40/mcf. At that gas price, GPOR should generate over $5.00 operating cash flow per share. That is enough to fund 10% annual production growth and continue their stock repurchase program.

[dan_s]

Here is what is in the near future for the "gassers": https://seekingalpha.com/news/3393882-n ... alyst-says