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 Dan on September 29, 2021 at 2:31am

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.

Permalink Reply by farmgas on October 4, 2021 at 1:54pm

How lightly will the prices go above $6.00?

Permalink Reply by Corvette on October 5, 2021 at 3:49am

Hope it keeps going up. I am in 3 proposed gas wells right now.

Permalink Reply by farmgas on October 6, 2021 at 9:25am

Well, looks that $6 mark is in the rear view mirror now.  How about $7 now?

Permalink Reply by william Allen. Ladd on October 7, 2021 at 12:49am

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 

Permalink Reply by paleface on October 7, 2021 at 5:52am

Yogi Berra, said one of the hardest things to predict is the future.

Permalink Reply by farmgas on October 19, 2021 at 9:47am

How is the perspective now for increasing prices & new drilling activity?  Anything in motion for next year?  Any new pipelines ROW`s being planned? 

Permalink Reply by farmgas on October 26, 2021 at 1:01am

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?  

Permalink Reply by Ralph cramdon on October 27, 2021 at 12:39am

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% 

Permalink Reply by farmgas on October 27, 2021 at 1:00am

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?

Permalink Reply by Ralph cramdon on October 27, 2021 at 8:29am

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 ... 

Permalink Reply by Ralph cramdon on October 27, 2021 at 8:30am

The Industry will grow thru consolidation ,,, the 'Gold Rush ' days are over in PA ....... 

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