Oil & Gas Prices - August 28
Posted: Fri Aug 28, 2020 8:24 am
Opening Prices:
> WTI is down 4c to $43.00/Bbl, and Brent is down 5c to $45.04/Bbl.
> Natural gas is down 1.7c to $2.693/MMBtu.
Yesterday's high for WTI was the highest price since March. Inflation is coming and it will take all commodity prices higher.
October is now the front month contract for natural gas. If the big jump in LNG exports materializes, we should see the November contract over $3.00 by the end of October. The December contract is trading at $3.20 this morning. Near-term outlook for the "gassers" is very strong. Take a look at my updated forecast/valuation model for Goodrich Petroleum (GDP) that I posted to the EPG website late yesterday. It is trading this morning for less than 2X this year's operating cash flow per share.
S&P Global: Shale gas bond recovery continues as futures prices stay above $3/MMBtu
"Bond prices for pure-play U.S. shale gas producers continue to recover after they were hammered during the March oil crisis, as commodity prices for this winter stay above $3/MMBtu and producers continue to restrain their spending and drilling. Investors and lenders are gaining faith in the overall sector as the prospect of significantly better natural gas prices this winter and throughout 2021 drives up stock and bond prices."
> WTI is down 4c to $43.00/Bbl, and Brent is down 5c to $45.04/Bbl.
> Natural gas is down 1.7c to $2.693/MMBtu.
Yesterday's high for WTI was the highest price since March. Inflation is coming and it will take all commodity prices higher.
October is now the front month contract for natural gas. If the big jump in LNG exports materializes, we should see the November contract over $3.00 by the end of October. The December contract is trading at $3.20 this morning. Near-term outlook for the "gassers" is very strong. Take a look at my updated forecast/valuation model for Goodrich Petroleum (GDP) that I posted to the EPG website late yesterday. It is trading this morning for less than 2X this year's operating cash flow per share.
S&P Global: Shale gas bond recovery continues as futures prices stay above $3/MMBtu
"Bond prices for pure-play U.S. shale gas producers continue to recover after they were hammered during the March oil crisis, as commodity prices for this winter stay above $3/MMBtu and producers continue to restrain their spending and drilling. Investors and lenders are gaining faith in the overall sector as the prospect of significantly better natural gas prices this winter and throughout 2021 drives up stock and bond prices."