Energy Prospectus

Natural gas down to 3.07 today from the highs of $4.00. All natural gassers down this last week.

It may be too early to judge because we have a couple of months of winter remain, but it raises the question of the normal natural gas production and price cycle.Will natural gas continue to be cyclical or is this year different with more natural gas for electricity and LNG exports.

What to expect from the producers?

Which gasser will be most affected?

Which LNG related stocks will prosper?

GLTA, Farrell

The MAR25 NYMEX futures contract is down because there is not a natural gas shortage in March.
> The winter heating season of 2024-2025 will end with NGas in storage below the 5-year average and much lower than where it was a year ago.
> LNG exports will continue to be 20 to 30 BCF per week higher than they were a year ago. LNG exports will stay high all year because NGas prices in Europe and Asia a MUCH HIGHER than they are in the U.S.

The NYMEX strip shows you how this will play out: https://www.cmegroup.com/markets/energy/natural-gas/natural-gas.quotes.html

The Bidding War for natural gas supply will get serious in Q3 because gas in storage much be increased before the next winter heating season begins in November. Refilling storage is not optional; it must be refilled.

Winter is not over. After a brief warm-up, the cold will return in the 2nd half of February.