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 Ralph cramdon on April 19, 2022 at 12:49am

At $8 , every old well has been turned on .... 

 Too expensive to buy out the Hedges in place .... New Drilling takes Months of planning and Budgeting ,and needs Board of Directors approval as well ...... 

 In addition many regions have a lack of pipelines to carry additional production ... 

 The sector is running full bore at these prices ,,,, Some Companies have zoomed higher others are Sleeping a bit .... Prices for many items will increase as N Gas is used in thousands of products .... 

Any Idea how the Farmers in your area are impacted by high fertilizer prices ???    

Permalink Reply by farmgas on April 19, 2022 at 2:52am

Wonder how gas companies are managing older shallow gas wells at these prices?  Are the valves wide open now; an opportunity to gain higher yields for lower production wells.  I have noticed a lot of permits to plug old wells on PADEP e-facts lately.  I`m not a farmer but would suspect higher fertilizer prices are hurting the farming industry.  Are the major gas company war rooms buzzing with planning activity now? 

Permalink Reply by Ralph cramdon on April 19, 2022 at 7:35am

Most gas Producers continue to  hold to current Production 'promises ' .. Lots of factors to consider , Funding , Permits , and Investors .... 

 Investors now want CASH RETURNS ,, either in Buybacks , Dividends , Debt Reduction ...... Other than some Politicians , nobody is clamoring for higher production ......... 

 As I have said in the Past , our Investments are only as good as the next headline ,,, the Weather Forecast must be trending warmer , N Gas is down 8% today ....... 

 This Economy is going to tank , the question is when to leave the 'party' ? 

Permalink Reply by farmgas on April 26, 2022 at 11:56pm

How are the Q1 reports looking?   Are they meeting investor expectations?   

Permalink Reply by Ralph cramdon on April 28, 2022 at 1:13am

AR had an excellent QTR ... They project a 25% Free Cash Flow Yield ...... Those with the least hedges will be very happy ... I am mostly out except for a couple of pipelines ... Rising Interest rates , Housing Bubble , Inflation are becoming more and more of a concern for me .... For me as of today , the risk to the downside is mucho higher than potential profit .... 

 The question is where to park $$$$ while markets gyrate and inflation eats away purchasing power ..... 

Permalink Reply by Ralph cramdon on May 3, 2022 at 12:38am

CTRA , the old COG just reported a very good qtr ..... N Gas prices are surging again .... CHK reports this week ... 

Permalink Reply by farmgas on May 3, 2022 at 10:40am

What is the forecast for high NG prices?  Will the price be high for several years?  How much higher is it forecasted to go?   At what point in time will gas companies who have been hedged be able to benefit from the higher prices?  In other words, is there a time limit for hedged prices?

Permalink Reply by Ralph cramdon on May 4, 2022 at 2:23am

I am surprised that Gas is over $8 ... Europe situation / Lack of new Pipes / Investors demanding restraint are all contributing ... Those least Hedged are making $$$ and are poised to become debt free ... The lower amount of debt means that they will probably hedge less in the future .....Making these outfits more volatile in the future .... Those who are fully hedged are also rising , but not at the same pace ... CTRA was up 9% yesterday , 22% hedged for the year ...   

Permalink Reply by Lynn mudder on May 4, 2022 at 3:49am

Do you know how much EQT is hedged and until when?

Permalink Reply by Ralph cramdon on May 4, 2022 at 11:39am

AR latest Presentation has a very informative page on EQT and others hedges  

Permalink Reply by farmgas on May 4, 2022 at 12:20pm

What an impressive presentation by AR!  I saw the graph showing hedged % by AR vs. several peers.  Unless the markets tanks again they should be in a great position throughout 2022 & 2023, and maybe beyond.  I really appreciate seeing their presentation which reflects how presentations used to look until several years ago, at least for some that only provide financial information now.  AR seems to be providing information to gain investor interest.  Thanks for your suggestion to take a look.

Permalink Reply by Lynn mudder on May 4, 2022 at 3:12pm

What is AR and where can I read this?

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