WTI Crude

Loading...

Brent Crude

Loading...

Natural Gas

Loading...

Gasoline

Loading...

Heating Oil

Loading...

Alt Text

The Future Of LNG Just Got A Bit Brighter

The future of liquefied natural…

Alt Text

Israel Passes Deal To Speed Up Leviathan Development

The Israeli government has approved…

  1. Home
  2. Energy
  3. Natural Gas
Dan Dicker By

Dan Dicker

Dan Dicker is a 25 year veteran of the New York Mercantile Exchange where he traded crude oil, natural gas, unleaded gasoline and heating oil…

More Info

How to Play the Coming Rise in Natural Gas Prices

When I wrote convincingly last July about the coming turnaround in Nat gas prices I did a great job in recognizing the trajectory of storage and the slow but steady drop of surplus in Nat gas that would lead to a 3rd and 4th quarter rally. 

Unfortunately, instead of just recommending the commodity itself, I tried to find stocks that I felt were so closely levered to the price of natty that they would respond to what has been a big move from around $3.40/mcf to today above $4.10/mcf.   Again, unfortunately, the stocks I gave including EnCana (ECA), Ultra Petroleum (UPL) and Devon (DVN) have refused to respond to the move as I had expected and the reason has been clear:  While Nat gas has rallied, the production where these companies are levered has been drying up.

Related article: Chevron Lands Million-Ton LNG Futures Buy in Australia

That’s been a function of both the shut-ins, and massive rush to liquids drilling that any company capable has been frantically attempting to accomplish in the last two years (Devon being a good example) and the needed drop in production that has been forced upon over-leveraged companies dealing with a depressed price (see Exco and Ultra). 

It has been instead in the Marcellus with continuing production increases where the price rise in Nat gas has translated to booming stocks:  Cabot Oil and Gas (COG), Range Resources (RRC), Southwestern (SWN) and EQT Corp. (EQT) being four companies…

To read the rest of this article Start a FREE subscription to our premium publication

Oil & Energy Insider - 30 day Free trial

30 day Free trial
A FREE Subscription Includes:
  • Investment advice normally reserved for hedge fund clients.
  • Market & sector research not available anywhere else.
  • Strategic advice from corporate & military intelligence analysts.
  • 9 Weekly Investment / intelligence reports.
  • Full access to all previous reports.
  • 30 days free trial.
Find Out More

An essential resource for all investors in the energy sector whether you're a trader, fund manager or individual investor - this inside look at the energy markets is unlike any other report or service currently available.

Oilprice - The No. 1 Source for Oil & Energy News