Just to let you know that I am not the only one turning bullish on natural gas.
NEW YORK (MarketWatch) -- A more robust outlook for natural gas prices is lifting the prospects for producers Devon Energy Corp. (DVN), Comstock Resources (CRK) and Cimarex Energy Co. (XEC), analysts at FBR said in a note to clients on Tuesday.
CRK and XEC are in our Sweet 16 Growth Portfolio. Devon Energy is a former S-16 company, which just got too big for the portfolio. All three companies were upgraded to outperform from market perform.
FBR hiked its 2013 average price forecast for natural gas to $4.50 per million British thermal units from $3.50 per million British thermal units.
"We believe that U.S. natural gas market fundamentals have already undergone substantial structural realignment needed to balance the market," FBR analysts said. Net demand has increased by 2.7 billion cubic feet a day, while net supply is expected to be down by 1.6 billion cubic feet equivalent next year. Without an increase in rig count, the market is undersupplied by 1.7 billion cubic feet a day in 2013, FBR said.
Bullish on Natural Gas
Bullish on Natural Gas
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Bullish on Natural Gas
This tells me that Exxon has turned bullish on North American natural gas. They have a lot of smart people over at Exxon.
Exxon’s Biggest Canada Deal Signals Shale Rush
By Joe Carroll and Rebecca Penty - Oct 18, 2012 9:06 AM CT
Exxon Mobil Corp. (XOM)’s largest-ever Canadian acquisition is fueling speculation that domestic companies with assets in Alberta’s shale-gas fields will become takeover targets.
Shares of Artek Exploration Ltd. (RTK), Cequence Energy Ltd. (CQE) and NuVista Energy Ltd. (NVA) all surged yesterday after Exxon agreed to pay $2.86 billion ($2.91 billion) for Celtic Exploration Ltd. (CLT)’s leases in the Duvernay and Montney shale formations that span an area twice the size of Los Angeles. Larger firms such as Tourmaline Oil Corp. (TOU) and Paramount Resources Ltd. (POU) also climbed.
The deal helps “externally verify” the Duvernay formation as being “one of the best liquids-rich plays in Canada,” said Randy Eresman, chief executive officer of Encana Corp. (ECA), Canada’s largest gas producer.
The Duvernay shale, which is soaked in natural gas as well as petroleum liquids such as propane and ethane, which fetch higher prices, may rival the mammoth Eagle Ford formation in south Texas, Eresman said in an interview yesterday in his Calgary office. The Eagle Ford holds the equivalent of 25 billion barrels of crude, according to ITG Investment Research, or enough to supply North American crude demand for 3 years.
“The major oil companies are recognizing that Canada represents an enormous opportunity to build out their portfolios in unconventional” resources such as shale, Gianna Bern, founder of Brookshire Advisory and Research Inc., a Chicago- based risk-management adviser to energy producers, said in an interview yesterday.
Exxon’s Biggest Canada Deal Signals Shale Rush
By Joe Carroll and Rebecca Penty - Oct 18, 2012 9:06 AM CT
Exxon Mobil Corp. (XOM)’s largest-ever Canadian acquisition is fueling speculation that domestic companies with assets in Alberta’s shale-gas fields will become takeover targets.
Shares of Artek Exploration Ltd. (RTK), Cequence Energy Ltd. (CQE) and NuVista Energy Ltd. (NVA) all surged yesterday after Exxon agreed to pay $2.86 billion ($2.91 billion) for Celtic Exploration Ltd. (CLT)’s leases in the Duvernay and Montney shale formations that span an area twice the size of Los Angeles. Larger firms such as Tourmaline Oil Corp. (TOU) and Paramount Resources Ltd. (POU) also climbed.
The deal helps “externally verify” the Duvernay formation as being “one of the best liquids-rich plays in Canada,” said Randy Eresman, chief executive officer of Encana Corp. (ECA), Canada’s largest gas producer.
The Duvernay shale, which is soaked in natural gas as well as petroleum liquids such as propane and ethane, which fetch higher prices, may rival the mammoth Eagle Ford formation in south Texas, Eresman said in an interview yesterday in his Calgary office. The Eagle Ford holds the equivalent of 25 billion barrels of crude, according to ITG Investment Research, or enough to supply North American crude demand for 3 years.
“The major oil companies are recognizing that Canada represents an enormous opportunity to build out their portfolios in unconventional” resources such as shale, Gianna Bern, founder of Brookshire Advisory and Research Inc., a Chicago- based risk-management adviser to energy producers, said in an interview yesterday.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group