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?

Views: 75780

▶ Reply to This

Replies to This Discussion

Permalink Reply by farmgas on February 1, 2023 at 6:29am

Subscribe to PA DEP Efacts for daily notices for new permits. 

Subscribe to marcellusgas.org for up to date information.

Permalink Reply by Ralph cramdon on February 1, 2023 at 4:31pm

Gas prices have been destroyed due to warm weather , over production and Freeport LNG out of commission......  Plenty of oil , very little gas in the portfolio ... That may change someday , but not yet ..

Permalink Reply by Ralph cramdon on February 2, 2023 at 4:58am

Only one Gasser , with assets in Appalachia and Haynesville in entire energy portfolio ... 

Permalink Reply by farmgas on February 2, 2023 at 3:20pm

The news from the gas & oil industry is a stock buy-back strategy to increase value for shareholders.  Many of these companies have shown huge profits which supports this buy-back effort.  They say their stock value increases as a result of these buy-backs.  What does it mean for a company who is aggressively buying shares of their own stock but the market value per share doesn`t increase?  In other words, does their company become more vulnerable to a buy-out because the number of outstanding shares of stock decreases while the price per share remains low.  For example, if they buy-back 25% of their stock and the market price per share remains low or remains unchanged is their company 25% less expensive to buy? 

Permalink Reply by Ralph cramdon on February 3, 2023 at 1:23am

I recently posted that Balance Sheets are really important . I have observed quite often a Company crows about buying back shares and then a look at their share count shows a INCREASE or a nominal reduction in share count .... How. could that happen ?? Management giving out huge blocks of shares as compensation ... Management is often not looking out for shareholders  , but themselves ... Greedy management is EVERYWHERE , former CHK boss Doug Lawler who drove CHK into Bankruptcy was paid an outrageous sum ... Gary Evans of Bankrupt MHR was another intersting guy . 

So in theory a company that buys back shares 'should' increase share price , in the real world it often doesn't seem to make a difference unless those buybacks are substantial .

 Best buyback story that comes to mind is a little talked about stock SGU , who has been buying back shares for years . 

Permalink Reply by Ralph cramdon on February 3, 2023 at 1:49am

CNX  TRUE share count year over year was reduced by 10 million shares , despite what the headlines say ... DEBT actually INCREASED .... per SEC filings 

Permalink Reply by farmgas on February 3, 2023 at 2:13am

Has this buy-back plan increased the shareholder value?  How?   Does this stock buy-back plan actually cause the company to have a lower over-all value making them more exposed for a buy-out?  In other words, if the share buy-back amount is 25% and share price remains the same is the company now 25% less expensive to buy?

Permalink Reply by farmgas on February 3, 2023 at 3:39am

Wouldn`t these gas companies better serve their shareholders & investors by just paying higher dividends?

Permalink Reply by Ralph cramdon on February 7, 2023 at 11:06am

I like dividends and enough buybacks to keep the sharecount level  and really like debt reduction 

Permalink Reply by Ralph cramdon on February 3, 2023 at 3:39am

If earnings remain the same , then earnings PER SHARE would increase if share count declines . Many look elsewhere for Investing .. FCF [ free cash flow ] is a very important barometer . 

 

The value of a company remains the same during buybacks , each shareholder gets a bigger slice of the pie with buybacks ... 

Permalink Reply by paleface on February 3, 2023 at 4:31am

Looks like Shell is trying to come back to fossil fuel,the company fell through the floor when they went green.New CEO he's talking fossil fuel and raised dividends. I wouldn't buy there stock with free money.

Permalink Reply by Ralph cramdon on February 3, 2023 at 8:29am

Same with BP ... Some Canadian producers look attractive here 

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service