Energy Prospectus

Sept NG futures expired yesterday at a stunning 9.353. Like other months, they closed into strength and dive the next day and week. Hedgers that hedged NG at 2.50 have to pay 6.85 on their idiotic hedges. They save 50 cents on the front end to pay 6.85 on the back end..Today spot was in the in the 8's and they have to wait for 45 days to collect the cash.

Europe is filling up

I prefer the unhedged names. Hedges at 2.50 are basically useless. The all in cost is about 2.50.

The q 3 avg should be the sum of (6.551+8.687+9.353)/3 = 8.197

https://business.directenergy.com/marke ... nt-history

If you like the unhedged, take a close look at CTRA, DVN, FANG and PXD. They are the four upstream companies in our High Yield Income Portfolio that now pay very high Fixed + Variable dividends. None of PXD's production is hedged and the other three have very little hedged.

They are large-caps with super strong balance sheets. They are all committed to low growth and high dividend payouts.

I like those names and MNRL