Can Gas Developers Prosper with Low Prices? Ryan Galloway Says Yes
Tom Armistead of The Energy Report (4/4/13)
Low natural gas prices and volatile oil prices should not hinder investors in the oil and gas sector. In fact, low prices carry their own benefits. Casimir Capital Analyst Ryan Galloway describes a number of oil and gas juniors with savvy management, impressive development strategies and strong prospects of success that have earned a [...]
Here’s the short version of why forecasts of low long-term oil and natural gas prices are almost certainly wrong: It costs more than that to get the stuff out of the ground. Only two things could actually lead to low long-term prices: 1) Somebody could invent and deploy some genuinely brand new technology that makes it really cheap once again to get oil and gas out of the ground or [...]
Zig Lambo of The Energy Report (9/6/12)
Elliott Gue, author and Energy Strategist editor, is excited about energy services companies. With high day-rates, long-term contracts and an international shortage of rigs for hire, many companies in this space are thriving and poised to deliver even greater shareholder dividends. In this exclusive interview with The Energy Report, Gue highlights catalysts that should unlock more upside potential.
The Energy Report: A lot has happened [...]
Wolf Richter www.testosteronepit.com
Natural gas traded at $3.22 per million Btu (MMBtu) at the Henry Hub on Monday, a seven-month high, and a jump of 69% from its April low. Breathtaking when you think that a few months ago, the doom-and-gloomers, who’d been right for a very long time, were predicting chillingly that the price would hit zero by the fall, when storage would be full and excess production would have to [...]
From All Star Charts:
We saw a nice little 60% move in natural gas prices over the last three months. But was that it or are we still going higher?
It looks to me like they put in a pretty solid base that took six months to form. So the setup is there. We have a clear neckline around $2.75 that’s now been broken. The month-long consolidation around those levels has allowed [...]
NEW YORK (Reuters) – About six years ago, an army of agents hired by energy companies started desperately courting landowners across the United States whose farms and ranches happened to sit atop some of the richest oil and gas deposits in the world. And so began one of the biggest land grabs in recent memory.
Those days are over.
U.S. energy titan Chesapeake Energy is quickly cutting back on an aggressive land-leasing [...]
From Pragmatic Capitalism:
It’s one thing when Jeff Gundlach, a bond manager, calls a bottom in natural gas as he did last month. It’s a whole other story when an energy billionaire calls the bottom. Boone Pickens was on CNBC today saying natural gas prices have likely seen their lows. He says:
“You’re gonna tighten this thing up. Looking out at summer next year at three-plus (dollars), I think that’s where you’re [...]
Opaque accounting, strained liquidity, large off-balance sheet liabilities, questionable corporate governance: Chesapeake Energy ticks all of the boxes for a company that investors should beware of.
It also has the second-largest natural gas production in the US, and a collection of some of the most attractive oil and gas assets anywhere in the world.
Having flown too high, Chesapeake has to jettison some of its best properties to stay aloft, and its competitors [...]
In the span of 30 minutes CHK managed to crush both longs and shorts in the name.
First, just after 3pm Eastern, the company filed an NT 10-Q announcing it would delay its 10-Q filing. The reason:
Chesapeake Energy Corporation (the “Company”) is unable to file, without unreasonable effort or expense, its Quarterly Report on Form 10-Q for the period ended March 31, 2012 (the “Form 10-Q”). Additional time is needed for the Company [...]
John Arnold, the hedge-fund manager who became a billionaire betting on natural gas prices, said he’s closing his Centaurus Energy Master Fund “to pursue other interests.”
“In the past 10 years, we have achieved more success than I could have hoped for or imagined,” Arnold said in a letter obtained yesterday by Bloomberg News. “We achieved outstanding returns for our investors – often in the triple digits – while having [...]
From Carpe Diem:
I’ve written extensively over the last several years about how the shale gas revolution is transforming the U.S. economy in ways that would have been unimaginable a decade ago. Descriptions of this revolution include:
Mort Zuckerman: “The good news is that the United States is at the center of a global energy revolution. Our development of innovative shale-gas technology offers the prospect of a huge bonanza of natural gas. [...]
From Carpe Diem:
1. Natural gas futures prices fell to another 10-year low today, to $2.208 per million BTUs on the New York Mercantile Exchange. In nominal dollars, that’s the lowest price for natural gas since February 2002… And adjusting for inflation, it’s the lowest price since July 1995, almost 17 years ago.
2. Michigan-based Consumers Energy announced today that it will lower natural gas prices starting next month for 1.7 million [...]
Gasoline prices rose again Friday and are now averaging more than $4 in six states and Washington, D.C. Oil had its biggest gain in three weeks and natural gas prices also rose.
Retail gasoline prices were up a penny on Friday to a national average of $3.831 per gallon, according to AAA, Wright Express and Oil Price Information Service.
The average price for a gallon of regular is now above $4 in [...]
Oil and gas companies drilled fewer new wells on public lands in 2010 than in any other year over the past decade, leaving nearly two-thirds of their drilling permits unused, according to federal records obtained by Greenwire.
The Bureau of Land Management issued 4,090 drilling permits in fiscal 2010, but oil and gas operators drilled 1,480 new wells, using about 36 percent of permits issued.
BLM’s permitting data refute industry assertions that [...]
The U.S. is the closest it has been in almost 20 years to achieving energy self-sufficiency, a goal the nation has been pursuing since the 1973 Arab oil embargo triggered a recession and led to lines at gasoline stations.
Domestic oil output is the highest in eight years. The U.S. is producing so much natural gas that, where the government warned four years ago of a critical need to boost [...]
In the first half of 2011, the Big Four benefited from tight supply-demand conditions for many key services, as frenzied drilling activity in North American shale oil and gas plays strained the industry’s capacity to meet these needs.
In particular, a shortage of pressure pumping capacity–a service critical to hydraulic fracturing–had enabled service providers to push through substantial price increases in recent years. Hydraulic fracturing is a process whereby producers pump [...]