Energy Prospectus

NGL prices closed at $49.06 per barrel on February 7 compared to $46.81 per barrel for the week ended January 31. Last week, ethane traded up by 15%, propane traded up by 7% and natural gasoline traded up by 6%, while butane and iso-butane slightly traded down, so that the composite NGL barrel traded 5% up compared to the previous week.

Prices for ethane at Mont Belvieu, a hub for natural gas liquids, traded from $0.35 per gallon on January 31 to $0.40 per gallon on February 7. Plus, during that period, propane prices moved up from $1.54 per gallon to $1.64 per gallon, a 7% increase. Pentane prices also increased from $2.15 per gallon to $2.28 per gallon. Though butane and isobutane prices dropped on the week, the price increase of the other natural gas liquids ultimately caused the composite barrel to trade up on the week.

The representative NGL barrel remains up over 50% since lows in June, a medium-term positive catalyst.

Companies that sell a lot of NGLs: ROSE, SM, XEC, EOG, GPOR, UNT, LINE

Rosetta Resources (ROSE) may be the big winner here. Over 1/3 of their boepd of production in 2014 will be NGLS. About 25% of GPOR's production this year will be NGLs.

SM will be selling over 31,000 bbls of NGL's per day in 2014.

You can find the production splits for each company at the bottom of our forecast models.