Surging Natural Gas Prices

How are the surging natural gas prices affecting drilling this year, and what about going into 2022?  Are the gas companies taking advantage of these higher prices?  What`s next?

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Permalink Reply by farmgas on March 4, 2024 at 8:50am

What impact does LNG demand have on storage inventories?  Is there a sufficient supply of natural gas for LNG without using storage fields? 

Permalink Reply by Ralph cramdon on March 4, 2024 at 10:06am

Seems like the more LNG shipped the higher production grows ,wiping away any benefit from LNG ... 

 EQT will reduce production substantially it was announced today ... Nobody makes money with gas south of $2 ... Most need 2.50 or better .......

Permalink Reply by farmgas on March 4, 2024 at 3:44pm

Aren`t most hedges above $2.50?  I`ve read that prices are rising now because of EQT.

Permalink Reply by Ralph cramdon on March 5, 2024 at 8:55am

Some outfits [ cnx] are almost fully hedged , others have zero hedges [ ar] ... Banks often require hedges when they lend money 

Permalink Reply by farmgas on March 5, 2024 at 9:11am

Then shouldn`t gas companies like CNX be somewhat unaffected by the current market downturn?  What is an acceptable % of a gas companies production to be hedged?  I think Diversified Energy has hedged funding too. 

Permalink Reply by Ralph cramdon on March 6, 2024 at 8:31am

Highly leveraged outfits are more hedged as Banks require it as a form of collateral... Balance Sheets are often overlooked and are important when making investments ... After taking a deeper look at DEC Balance Sheet recently , I will continue to watch from the sidelines ...CNX is basically range bound due to its hedges , while it whittles away at its limited future drilling sites .. CNX will eventually merge or be taken over ... Mergers lately have offered very little in the way of premiums ...  

Permalink Reply by Darrell Weaver on March 6, 2024 at 4:20pm

Are gas companies (Seneca) bound by hedges to pay royalties based upon the hedged prices……

Permalink Reply by paleface on March 7, 2024 at 8:50am

Ralph what do you think about EQT 'S debt equity?

Permalink Reply by Ralph cramdon on March 7, 2024 at 10:39am

Paleface , without doing a deep look ... EQT Balance sheet looks fine ... Less than 50% debt to Assets ... No 'Goodwill " posted on the 10K .. OWNERS EQUITY slipped a bit even though the $$ numbers are higher , the share count also increased ... Hard to build Equity when gas is at $2 ... 

Permalink Reply by farmgas on March 8, 2024 at 7:51am

Natural gas seems to be creeping higher.  Whats in store for the market now?

Permalink Reply by paleface on March 8, 2024 at 9:06am

Painter well pad in Westfield Tioga has 8 well approved drilling permits.

Permalink Reply by Ralph cramdon on March 8, 2024 at 11:33am

Thanks Paleface 

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