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 October 10, 2023 at 2:14pm

I think knowing a gas companies method is satisfactory letting you know what to expect.  It would also be helpful to know how  they arrive at the price to use.  For example, is it an average over a 30 day period?  Is it the market price on a certain day of the month?  Also, I would want to know what the monthly reduction covers as in post production costs.

Permalink Reply by farmgas on October 20, 2023 at 2:24am

Are we seeing the beginning of a new level (higher) for natural gas prices?  Where might it be this time next year? 

Permalink Reply by Ralph cramdon on October 20, 2023 at 6:49am

N gas prices have crashed this week .. We are now at 106 bcc/d .. Totally insane ...Rumor mill says CHK to suck up SWN ... SWN Haynesville IS much better than CHK Haynes 

Permalink Reply by farmgas on October 23, 2023 at 9:02am

Henry Hub price seems to be rising....$.3.19    What am I missing about NG pricing?

Permalink Reply by farmgas on October 25, 2023 at 8:24am

3rd quarter reports coming out now.  Any thoughts for each one? 

Permalink Reply by Ralph cramdon on October 26, 2023 at 11:01am

AR took off today , have not had the time to read in depth , RRC ho hum EQT , ho hum .... Production is thru the roof , these guys are once again shooting themselves in the foot . Finally much cooler weather next week in the N East .. Gas up 7 % this evening ... Jan 2025 gas futures in the $4.40 range ... Might be a good time for them to hedge ... Hard to make $$$ last qtr when gas was at @2.50 ish , when costs are in the low to mid $2 range . Oil prices telling us hard economic times approaching , even with the Mid East in turmoil ... Iran is still a wild card ... I am on the sidelines  with oil , but always watching events . Currently 35 %  invested,  the balance in T bills and some agencies . Playing some nooks and crannies , but distrust of this market remains .. 8% mortgage rates will slow things up . 

Permalink Reply by Ralph cramdon on October 26, 2023 at 11:03am

HH pricing was below $3 this week , climbing tonight ... It also matters what website you use .. Some quote Oct contracts , some are quoting Nov 

Permalink Reply by farmgas on November 5, 2023 at 3:03am

How are investor funded natural gas companies viewed?  Since they aren`t financially funded through public shareholders do they typically have a short life-span before being sold?  Is this why private investors get involved to invest funds and then flip the  company once their goals are met?  But what is the attraction for a buyer if most of the prime drilling locations are drilled out by a private investor funded company before a sell?

Permalink Reply by paleface on November 6, 2023 at 2:46am

A good portion of futures money went into treasuries this could cause a spike in NG prices oil and gas company's will have to borrow for capex.

Permalink Reply by Ralph cramdon on November 6, 2023 at 3:29am

Hard to invest in a small investor group . Economies of scale favor the bigger operators . I have been approached a few times by private groups and have passed , too little liquidity , too little control , not enough risk/reward ... Plenty of Park Ave $$$$ flowing around looking for the next deal , they too want economies of scale ... 

Permalink Reply by Ralph cramdon on November 7, 2023 at 1:56am

Gas is being crushed , they produced over 112 BCF the other day ... Totally out  touch with reality ...

Permalink Reply by farmgas on November 7, 2023 at 2:03am

Why are the gas companies not slowing down production?  Is it financially driven to cover their costs? 

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