I hope you’re right Kyle. I lot of the companies are hedged pretty low though and won’t see increased profit til next year.
How lightly will the prices go above $6.00?
Hope it keeps going up. I am in 3 proposed gas wells right now.
Well, looks that $6 mark is in the rear view mirror now. How about $7 now?
About $6.32 yesterday. Today only $5.68 Its gonna be a hassle for whoever decides what the monthly royalty's should be. Prices have jumped faster and higher then a rabbit cornered in a group of rabbit dogs! And now dropped 11 percent. Granddad Ladd
Yogi Berra, said one of the hardest things to predict is the future.
How is the perspective now for increasing prices & new drilling activity? Anything in motion for next year? Any new pipelines ROW`s being planned?
The drilling companies seem to be holding back on new drilling, why? Are they just opening up already drilled wells for more production? Are they being cautious that this price surge is not a long term benefit to them?
Public Gas producers are under pressure to FINALLY produce PROFITS ,,, the days of ever expanding drill programs are over .. Free Cash Flows are the trend now , the Banks and Wall Street demand that these outfits live within their means .... CAPEX in general have been reduced by roughly 50%
Ralph: Will the future for gas companies to hold back on new drilling just to reduce their budget? Will they adjust how they hedge future gas prices now knowing that increases beyond those hedged prices are possible? No speculation drilling for them??? How does this industry grow in the current climate and well into the future?
Good questions ... NE PA is constrained by lack of pipeline growth due to politics .. Basically the pipes are full and the gas is sold at a discount due to competition for space on the pipe .... Private outfits may grow their production , the Public Companies will refrain from any meaningful growth , as the Banks and Wall Street finally had enough of reserve growth and want to see Free Cash Yields of 10% or much higher ..... Look for further consolidation , CNX is likely to be a candidate so is privately held Chief .... Producers would be smart and hold effort at current levels as prices have been much firmer and they now can pay off debt and for some begin to pay dividends ...
The Industry will grow thru consolidation ,,, the 'Gold Rush ' days are over in PA .......