Natural Gas Prices remain bearish

[dan_s]

The domestic natural gas rig count continued to move lower after 5 rigs were
idled last week. There are now 962 gas rigs operating which is about 3% below
the mid-August peak of 992 rigs. Meanwhile, the horizontal-only rig count rose
4 to a fresh all-time high of 916 rigs which equates to a 60% year-to-date
increase. The composite spot natural gas index price (calculated over the
entire week) dropped 7% to $3.67/MMBtu. Our full-year 2010 composite spot
natural gas price forecast is $4.50/MMBtu, below First Call consensus of
$4.76/MMBtu (down from $4.79/MMBtu the prior week). Looking forward, we
expect natural gas to average $4.25/MMBtu in 2011, well below First Call
consensus of $5.26/MMBtu (which declined from prior week $5.33/MMBtu).

From Citigroup Global Markets Report

PS: I'm using $4.50/mcf in my 2011 Forecasts (adjusted for each company's hedges and differentials)