The "Gassers"
Posted: Sun Aug 01, 2021 8:30 am
After updating AR and RRC my "bullishness" for natural gas and NGL's has increased. I am working on EQT today. It is now the largest natural gas producer in the US.
As I highlighted in my July 31 podcast, demand for US natural gas increased by over 17 Bcf per day from 2016 to 2020 and (per EIA) demand for US gas is expected to increase by more than 18 Bcf per day over the next five years. This demand grow is primarily due to increasing exports of LNG and via pipeline to Mexico. Industrial demand within the US has recently accelerated. Natural gas prices in Asia and Europe are over $13/MMBtu and likely to go even higher. Last week Japan/Korea gas was trading for $15.25US/MMBtu. Our LNG export facilities are operating at or above design capacity to meet global demand.
Note from EQT's CEO
President and CEO Toby Rice stated, "The closing of the Alta acquisition represents another important step forward in creating value for our stakeholders. These premier assets will accelerate our deleveraging strategy, provide attractive free cash flow accretion, and enhance strategic opportunities. We are excited to fully integrate these high-margin assets into EQT's already robust portfolio, while working alongside and building strong relationships with the new business partners established with the transaction. We are a values-driven organization designed to perform for our stakeholders, and we are eager to deliver the prolific value embedded in these assets."
Rice continued, "We have entered the sustainable shale era, which is driven by free cash flow generation, balance sheet strength, the pursuit of net zero emissions, and returning capital to shareholders. These concepts are firmly embedded in our multi-level strategy geared towards sustainable value creation. We continue to Evolve to realize the full potential of EQT's assets, diligently monitor the market in an effort to capture accretive Consolidation opportunities, and explore New Ventures in an effort to forge new paths and open new markets to achieve sustainable growth. We are executing this strategy with vision and purpose, as we continue on our path to become the clear operator of choice for all stakeholders."
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IMO "the stars are aligning" for a Bidding War for natural gas supply within a few months. It has already started, but it will heat up as winter approaches. In November, 2018 a bidding war pushed natural gas futures over $4.80/MMBtu. The US gas market is tight now and will be much tighter in Q4 2021 than it was back in Q4 2018.
As I highlighted in my July 31 podcast, demand for US natural gas increased by over 17 Bcf per day from 2016 to 2020 and (per EIA) demand for US gas is expected to increase by more than 18 Bcf per day over the next five years. This demand grow is primarily due to increasing exports of LNG and via pipeline to Mexico. Industrial demand within the US has recently accelerated. Natural gas prices in Asia and Europe are over $13/MMBtu and likely to go even higher. Last week Japan/Korea gas was trading for $15.25US/MMBtu. Our LNG export facilities are operating at or above design capacity to meet global demand.
Note from EQT's CEO
President and CEO Toby Rice stated, "The closing of the Alta acquisition represents another important step forward in creating value for our stakeholders. These premier assets will accelerate our deleveraging strategy, provide attractive free cash flow accretion, and enhance strategic opportunities. We are excited to fully integrate these high-margin assets into EQT's already robust portfolio, while working alongside and building strong relationships with the new business partners established with the transaction. We are a values-driven organization designed to perform for our stakeholders, and we are eager to deliver the prolific value embedded in these assets."
Rice continued, "We have entered the sustainable shale era, which is driven by free cash flow generation, balance sheet strength, the pursuit of net zero emissions, and returning capital to shareholders. These concepts are firmly embedded in our multi-level strategy geared towards sustainable value creation. We continue to Evolve to realize the full potential of EQT's assets, diligently monitor the market in an effort to capture accretive Consolidation opportunities, and explore New Ventures in an effort to forge new paths and open new markets to achieve sustainable growth. We are executing this strategy with vision and purpose, as we continue on our path to become the clear operator of choice for all stakeholders."
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IMO "the stars are aligning" for a Bidding War for natural gas supply within a few months. It has already started, but it will heat up as winter approaches. In November, 2018 a bidding war pushed natural gas futures over $4.80/MMBtu. The US gas market is tight now and will be much tighter in Q4 2021 than it was back in Q4 2018.