This article will help you understand why I remain bullish on Antero Resources (AR), Range Resources (AR) and Gulfport Energy (GPOR). All three will benefit from the increasing takeaway capacity coming to the Marcellus/Utica.
Read: https://www.bloomberg.com/gadfly/articl ... he-monster
The Marcellus/Utica is one of "God's Gift to America". I think we finally have a president who gets it.
AR, RRC and GPOR
AR, RRC and GPOR
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: AR, RRC and GPOR
The article you directed us to says:
<<More pipelines form part of a wider, deflationary trend of rising energy supply that is likely under President Trump (see this). That means not only gas markets, but also coal miners and even power generators will feel the effects as those ripples grow more intense.>>
And: <<After years of bottlenecks, Appalachian natural gas suppliers may have more pipelines than they need by the end of 2017.>>
This sounds exactly like conditions that contributed to the nightmare slump we've just been through. How is this bullish? I'm afraid sentimental references to "God's gift" and "a president who gets it" aren't analysis. How about more explanation?
<<More pipelines form part of a wider, deflationary trend of rising energy supply that is likely under President Trump (see this). That means not only gas markets, but also coal miners and even power generators will feel the effects as those ripples grow more intense.>>
And: <<After years of bottlenecks, Appalachian natural gas suppliers may have more pipelines than they need by the end of 2017.>>
This sounds exactly like conditions that contributed to the nightmare slump we've just been through. How is this bullish? I'm afraid sentimental references to "God's gift" and "a president who gets it" aren't analysis. How about more explanation?
Re: AR, RRC and GPOR
Access to better markets and elimination of bottlenecks is good for the Marcellus/Utica companies, which include AR, RRC and GPOR.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: AR, RRC and GPOR
The U.S. natural gas market is the world's largest market and it is now growing at a much faster pace than it did in the ten year period 2000 to 2009, primarily because of exports and more gas being used for power generations. In 2017, industrial demand is also expected to grow. Not including weather related demand. Demand for U.S. dry gas is expected to increase by 3.5 Bcf per day YOY in 2017.
Here is a little home work assignment for you.
Go to: https://www.eia.gov/dnav/ng/hist/n9070us2m.htm < There you will find a table showing dry gas production by month from 1997 to November, 2016.
Add up the 12 months of 2015 and divide by 365 days. What do you get?
Add up the 11 months of 2016 and divide by 335 days. What do you get? [EIA only has actual production through November. The weekly numbers are SWAGs based on formulas.]
What does this little exercise tell you?
I can give you the answer, but if you do it yourself you will believe it and it will sink in more.
Here is a little home work assignment for you.
Go to: https://www.eia.gov/dnav/ng/hist/n9070us2m.htm < There you will find a table showing dry gas production by month from 1997 to November, 2016.
Add up the 12 months of 2015 and divide by 365 days. What do you get?
Add up the 11 months of 2016 and divide by 335 days. What do you get? [EIA only has actual production through November. The weekly numbers are SWAGs based on formulas.]
What does this little exercise tell you?
I can give you the answer, but if you do it yourself you will believe it and it will sink in more.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group