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 January 25, 2022 at 12:05pm

Are there any signs by a gas company of impending sale?  Is it kept pretty secret until it happens?  Does Wall Street have clues? 

Permalink Reply by Ralph cramdon on January 25, 2022 at 1:28pm

Any leaks would be considered Insider Trading and subject to Criminal SEC Laws .... Leaks do occur tho illegal ... CHK deal was leaked over the weekend ......

Permalink Reply by farmgas on January 25, 2022 at 1:36pm

Oh, I understand.  What I was thinking about are operational changes.  Maybe less development activity, selling off some assets, changing or delaying plans, key employees leaving, etc.  All things that might be publicly observed. 

Permalink Reply by Ralph cramdon on January 26, 2022 at 2:04am

Consolidation in the Energy Patch will always continue , with a depleting Asset , they need for new drill sites is a continual process .....The great Shale race appears to be over , winners and losers abound ... New Shale plays yet to be found in the US is becoming more unlikely .......... 

Permalink Reply by paleface on January 26, 2022 at 12:08pm

It will be interesting to watch Shell with the new cracker plant getting ready to come on line.I would think thats for sale also with there exit from fossil fuel. Shell went off shore and out of this country.

Permalink Reply by farmgas on January 26, 2022 at 12:15pm

I have often wondered what the start-up for the Shell Cracker Plant will mean for more drilling activity near it?  Will the start-up signal a need for more wells in the system to feed it with natural gas?  Will these new wells be located in Eastern Ohio o Western PA or both?

Permalink Reply by Ralph cramdon on January 27, 2022 at 1:03am

I know Shell has agreements with AR and more than likely , RRC ... Shell needs Ethane ... Currently much Ethane is left if the gas sold to market as prices and demand has been weaker than supply .....

 Talks are ongoing for another Ethane Cracker somewhere in WV ..... 

 The past year has been a huge turnaround for AR .... which had been struggling under a huge amount of debt ........ Now Insiders are dreaming of an dividend ....,... 

Permalink Reply by farmgas on January 27, 2022 at 3:29am

It`s 4Q reporting time.  CNX issued theirs this morning.  All financial statistics with no information supporting future plans or even on-going development.  AR is next in several weeks.  What`s next for them?

Permalink Reply by Ralph cramdon on January 27, 2022 at 4:48am

Thanks for the heads up on CNX .... AR is done a lot of positive moves this year or two ..... Look for a possible dividend announcement this year as debt has become well under control ..... After a great run from a $2 share low , its ben range bound fromm $16 to $22 lately ... Close to $19 today .... AR makes a lot of money from liquids and liquid prices remain firm and a Credit Suisse report relaesd to forecasts 2022 liquids prices to remain strong which would make AR very attractive if Gas and Liquids remain at prices seen today ... Lots of outside influences ... Where does the DOW go ??? How cold is the Weather ????   Russia / Ukraine / Europe Nat Gas ???? 

Permalink Reply by Ralph cramdon on January 27, 2022 at 5:01am

So CNX seems hedged in the $2.35 range ..... With Inflation raging, resulting in possible higher drilling costs , and their Income fixed due to Hedges , what might happen to their expected Income ?????? 

 In addition , some of their numbers don't seem to add up ..... They claim to have purchased x number of shares , yet their share count on the Balance Sheet doesn't seem to agree with their statements ... Why ???? Possible answer is Share Awards to Management ....... I don't have the time nor the inclination to dig deeper , as other Gassers attract more of my time .....

  One final note ... CNX spent Zippo on Utica drilling ,,, a Indicator of the economics of Marcellus vs Utica .....

Permalink Reply by paleface on January 27, 2022 at 8:22am

CVX. keeps climbing can't get a buy,but you never know it might be a great buy.There not going down the woke trail and its paying off.

Permalink Reply by Ralph cramdon on January 27, 2022 at 10:59am

The Oil Sector has been strong over the past year , took a rest around mid Nov and has a good Jan 2022 .. N gas up6% today .....

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