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 February 10, 2024 at 3:25pm

Just how plentiful is the associate gas around a oil well?  Is there a small area that is drained with the oil?  Does it exit through the same borehole or does it require a separate well?  Is this gas volume equivalent to a Marcellus or Utica well?  Does it have a quick decline after the well is drilled & fracked?

Permalink Reply by Ralph cramdon on February 11, 2024 at 1:57am

Drillers want gas/oil wells ... The gas helps push the oil thru the pores of rock so the oil can be harvested . The same hole is used ... Till several years ago , it was quite often cheaper to burn the gas or flare it at the well site , now that is mostly illegal and must be piped to the system . The amount of gas from the Permian is a major factor as to why we have an oversupply ,, and the newer well in the Permian seem to be gassier than the older wells . Haynesville as well has ramped up production as its closer to the LNG ports ...

Permalink Reply by paleface on February 11, 2024 at 3:14am

The new gas pads in Middlebury township Tioga co. Look like a refinery different separators on the pad, its a shame we can't post pictures hear.

Permalink Reply by Ralph cramdon on February 11, 2024 at 6:41am

Have not read latest NFG report ... Looking forward to it 

Permalink Reply by farmgas on February 11, 2024 at 8:57am

Have you noticed how publicly open NFG is with their current & future plans for development?  Such a difference from how it used to be with gas companies in the past.  Is it competitive control of information or is it a change need to just providing accounting information for investors knowledge?  Kudos to NFG

Permalink Reply by Ralph cramdon on February 12, 2024 at 1:37am

Read the NFG presentation , I was hoping / looking for more color on well results in Tioga Utica . They seem to focus on that region , but are mute on EUR's . NFG western lands are seem to be sub par , as this area is royalty free and yet they are focused in Tioga where they do pay royalties .... 

Dividend not high enough / Beta not high enough ,,, I will watch from the sidelines . 

Permalink Reply by paleface on February 12, 2024 at 2:36am

Ralph NFG is a utility co. thats 1 thing that makes them different than co. like EQT,CHK,SWN and so on they need this gas for there customers.I don't think they will show great growth but steady production.They do pay a high royalty so far.

Permalink Reply by farmgas on February 12, 2024 at 2:46am

I noticed in their presentation documents that they have underground storage locations in NY.  Would this signal why they have an aggressive drilling program to keep those storage locations filled up?  Basically a self-contained organization.  Do they also sell gas on the market?  Am I reading this correctly?

Permalink Reply by Ralph cramdon on February 12, 2024 at 4:44am

Paleface , NFG is a 'jack' of all trades .. Utility outfit , pipeliner , driller /producer .... NFG utility rate of return is in the 8% range which is determined by NY regulators ... NFG has been having a nasty time getting new interstate pipes built , and finally NFG gas grounds do not economically compete with grounds in Bradford or in the Pittsburgh area .... No compelling reason for imclusion in the portfolio ... During times of severe market meltdowns , it might become atractive , otherwise other energy  investment choices are available .. 

 Not that long ago both SWN and EQT also had gas utility divisions which they both spun off and focused on drilling .... 

Permalink Reply by paleface on February 12, 2024 at 6:35am

I agree Ralph it doesn't reach out to you but one day it might. If the price starts to spike it might be time to buy.CHK is whistling a happy tune today.

Permalink Reply by Ralph cramdon on February 12, 2024 at 8:25am

Chessie is a fine outfit , owned it on and off since 2000's ... it has been good to me ...Last time I walked is when Doug bought Wildhorse in the Eagleford .... Balance sheet was in bad shape and the bankruptcy was plain to see if one bothered to look ..... Don't like the sector as of now , I will watch from the sidelines , till something really changes ... Been a very good run for coal once again . 

Permalink Reply by farmgas on February 14, 2024 at 10:44am

Where is the bottom to this price slide?  What is the probable cause for it?

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