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 July 22, 2022 at 9:07am

Gassers have been producing gas at record numbers 

Permalink Reply by farmgas on July 26, 2022 at 2:17am

How will the gas industry look next year & beyond?  How will this surge in gas consumption and high prices change the landscape of the gas industry?  Who will be the winners & losers?

Permalink Reply by Ralph cramdon on July 26, 2022 at 2:59pm

If I was a producer I would be hedging the beans out of my production ... Production keeps creeping higher and sooner or later the world will be awash in LNG , but that will take awhile ,, Cautiously Bullish as of today , that might change with the next headline ,,, increasing production and the threat of a recession keeps me on edge .... GDP numbers come out on Wed ,, could be a market mover .... 

 Who will be a winner ?? Those who are the lowest cost producers and are least hedged .. Keep an eye out for AR , CRK .... also CHK .... EQT and RRC will be in the running as well ... CTRA a high quality outfit doesn't get much 'love' , cnx is highly hedged , NFG doesn't inspire Investors , NFG is good but 'boring ' .... AR reports Wed after the Close ... 

 Oiler CLR is one to watch as H Hamm wants to buy out the Corp ...... CLR reports Thurs after the Close ...... 

 For you NFL fans , CRK is owned by Dallas Cowboys ownwr Jerry Jones 

Permalink Reply by frank sparacino on July 30, 2022 at 1:41pm

surging gas prices, yet our lease holder SWN pumps nothing near us. CABOT owns leases in the same area, they’ve been pumping whole hog for YEARS. It just seems SWN, others not producing are just out to flip the leases.

I WISH SWN would sell out to CABOT.

Permalink Reply by Ralph cramdon on August 1, 2022 at 7:37am

SWN is not the strongest producer out there ,, lots of debt and poor hedges ...Best of luck ...

Permalink Reply by farmgas on August 2, 2022 at 2:05am

How is demand looking today for more NG?  What will this winter look like for Europe without Russian NG?  How does Europe store NG?  Does it have to be LNG until used or can LNG go back to NG and then stored as we do in underground storage?

Permalink Reply by frank sparacino on August 2, 2022 at 3:50am

I’ve heard that NG usage from USA should be up due to the war. Thus, we should be exporting more. Y, the export LNG & im not positive, but I think it can b converted back to no.

Permalink Reply by Ralph cramdon on August 2, 2022 at 4:57am

 US LNG shipments are basically full for now , with new facilities under construction ... Keep an eye out for Aussie Land ... Some chatter that they will curtail LNG exports this Fall ....   Chessie reports tonight ,, its highly rated by many 

Permalink Reply by Ralph cramdon on August 2, 2022 at 4:54am

Gas prices are dictated by our weather ... Cold in the winter , hot in the Summer is bullish ..... Due to high prices , production is creeping up , which is something to keep am eye on .... Gas has been volatile..... I would be hedging if I was in power .... Euro gas play ... NRT ,,,,, This is not a recommendation  ..... Euro gas is mostly stored underground ..... 

Permalink Reply by frank sparacino on August 2, 2022 at 3:50am

Thnx. Ur definitely right. 

Permalink Reply by Spike's Kin on August 2, 2022 at 5:53am

CNX just released its 2nd Quarter results last week, with guidance for the rest of 2022 indicating they're going to lose $1.6B due to hedges. There's a tough row to hoe for some that were locked into longer term derivatives before they get back to drilling. Only once they work through these positions can they enjoy these higher prices. Until then, such hedging might as well be shorthand for hemorrhedging 

(That $1.6B loss is equal to about 3 recent years-worth of CNX's annual capital expenditure budget). 

Permalink Reply by farmgas on August 2, 2022 at 6:01am

Have you noticed their stock has declined the past 3 days since the 2Q report last week?  How important is Indiana, Westmoreland & Armstrong counties to their profit line now?  They seem to be pulling back from Greene County.  Will those 3 counties mentioned become the new "core area"?

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