By Paul Sankey
Published on March 8, 2024 at 10:03 AM
Rounding out our series on the drama of US natural gas – the under-pinning of the global energy economy – we combine the latest news on gas rig cuts with 10K reserves filings to show a concerning picture for the US natural gas market and gassy equity valuations. Relatively, and long term, we like Antero on liquids-rich production, deep inventory and strong propane. Similarly Range (RRC) has the second highest NGL cut after Antero. We …
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By Paul Sankey
Published on February 21, 2024 at 9:15 AM
Good news: Chesapeake is cutting activity in US natgas. In the “long cuts/short active” gas drillers pairs, we like propane-rich Antero long vs Short EQT who continue to keep activity high. EQT is supported by its hedging, which makes no sense to us: these financial instruments can be used to maintain cashflow, with no need to maintain activity. Generally, we do not like dry gas plays in 2024, but would favour Chesapeake with capex discipline, …
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By Paul Sankey
Published on February 15, 2024 at 10:03 AM
The market whisper is that natgas is heading to break the buck (<$1/mmbtu Henry Hub). Time to buy natgas? We are not switching stance until Comstock capitulates. The company reported results and held its conference call yesterday. ~ ExxonMobil: the company risks Maduro vs Guyana as 1:10 risk where one is low. Clients are asking about Chevron’s delayed proxy too. CVX say the S-4 will be issued this quarter and “nothing recently in the news …
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