Read more: http://www.businessinsider.com/arthur-berman-shale-is-magical-thinking-2013-1?op=1#ixzz2IXJjv61y
Posted by jackbassteam on January 20, 2013
http://amp2012.com/2013/01/20/the-hype-about-americas-energy-boom/
Shale Gas Outrage Rally (Photo credit: Marcellus Protest)
The Shale Oil Revolution Is Real, And It Will Have A Massive Impact On The Global Economy
We are seeing calls that, thanks to shale drilling, the U.S. is poised to become the world leader in oil production, leading some to begin invoking “Saudi America.”
Today, Goldman Sachs analyst Kamakshya Trivedi, weighed in on the global macro implications of this phenomenon in a note titled: The shale revolution is changing the global energy landscape.
The note actually goes further, talking about how the entire economic landscape could potentially change.
The main impact, they write, is that oil prices will no longer prove a brake on growth:
…shifts in production are gradually loosening the oil price constraint that has been a persistent feature of the global economy. If global demand growth can recover, the risks that it will be choked off by rising oil prices are receding.
This will produce a knock-on effect for household incomes in the West, while blindsiding petro-states:
The drag on household incomes in the developed world from this source should end.
The flipside of the improving terms of trade for these consumers, of course, is a less friendly picture for producers and producing countries, where the sustainability of spending based on sustained high oil prices may come under more scrutiny.
Meanwhile, central banks will be able to shift their focus from containing headline inflation:
Rising energy prices have affected core inflation measures to a degree, influencing the inflation outlook even for central banks, like the Federal Reserve, that have focused more on underlying inflation measures. As a result, lower ongoing energy inflation means that monetary policy may be easier on average than it otherwise would have been.
Finally, here in the U.S., they estimate production will further equalize our trade balance by an amount equal to 1.2% of GDP:
The lion’s share of this would come directly from improving net energy exports, similar to the forecast increase of $136bn for net imports from our Energy team over this period, with a smaller increase coming from improved competitiveness of US manufacturers.
They conclude by depicting just how truly tectonic America’s shale story can be — the third-largest on record:
 Goldman Sachs |
One of big reason is North Dakota‘s Bakken formation, which we showed you around earlier this year.
But another huge factor is the Eagle Ford formation in Texas, which many believe has become the most profitable oil play in the world:
Related articles
Posted by jackbassteam on December 5, 2012
http://amp2012.com/2012/12/05/goldman-sachs-the-shale-oil-revolution/
Texas Barnett Shale gas drilling rig near Alvarado, Texas (Photo credit: Wikipedia)
Nov 10
Hydraulic fracturing involves propagating the fractures in a rock layer using pressurized fluids in order to release oil and gas that isn’t economically viable to extract using traditional drilling techniques. While fracking was technically first used in 1947, modern fracking techniques like horizontal slickwater fracking weren’t commercially used until 1998 in the Barnett Shale.
The process works by pumping fracturing fluids – like slickwater, gel or foam – into a wellbore at a sufficient enough rate to fracture the rocks below. When these fractures occur, the operator injects proppants into the well to prevent the fractures from closing when the fluid pressure is reduced. And finally, oil and gas leaks from the fractures into the well for extraction [see also Four Little Known Factors Driving the Price of Crude Oil].
Fracking has made it possible to reach significant oil and gas resources that had previously demonstrated a poor flow rate and weren’t economically accessible. In particular, the technique has become very popular for extracting oil and gas from tight sands, shale and coalbed methane formations where older oil wells were no longer effective.
The International Energy Agency estimates technically recoverable shale gas resources of about 208 trillion cubic meters, or 7.3 quadrillion cubic feet. Meanwhile, the same agency estimates the natural gas production will increase from 3,276 billion cubic meters to some 5,112 billion cubic meters by 2035, as techniques like fracking become more common.
This enormous potential is just beginning to hit the market as fracking grows in popularity in the U.S. and, to a slower extent, abroad. The U.S. Energy Information Administration predicts that some 7.6 trillion cubic feet of shale gas will be produced in the U.S. in 2012, up 11.6% from 2011, with overall U.S. natural gas production expected to rise 4% to 5% per year [see also A Deeper Look At America's Commodity Industry].
The largest fracking opportunities in the U.S. lie in shale plays, including:
Despite the success in the U.S., fracking has been slow to spread to other countries around the world. Many governments, like those in Europe, Asia, Africa and South America, own mineral rights that create little incentive for private parties. The practice was also temporarily suspended in Britain after a series of small earthquakes led to some concerns.
Fracking can impact the environment in a number of different ways, ranging from water contamination to increased seismic activity. These concerns have led to significant opposition to fracking in many areas, both inside the U.S. and in other countries around the world. Many of these studies are also ongoing, including a major environmental impact study in the U.S.
Water contamination is a principal concern and can easily occur during the fracking process. Accidental spills at the surface, leakage into a shallow aquifer through imperfect sealing, leakage to shallow aquifers through the rocket, and discharge of insufficiently treated waste water into groundwater or even deep underground are all common causes of concern [see also Why Alternative Energy Will Never Become Widespread (In Our Lifetime)].
The U.S. Environmental Protection Agency (EPA) estimates that 70 to 140 billion gallons of water are used to fracture 35,000 wells in the U.S. each year, while shale gas wells can use more than 4 million pounds of proppant per well. Disturbingly, some studies have shown that between 20% and 85% of fracking fluids may remain underground and contaminate groundwater.
Another major environmental concern has been increased microseismic events. The U.S. Geological Survey documented several cases of man-made earthquakes caused by hydraulic fracturing and waste disposal wells. While these have so far been small earthquakes, they may be powerful enough to disrupt underground wells and cause soil contamination.
There are many different ways for investors to capitalize on the boom in fracking. The easiest way is to simply purchase stock in companies that hold stakes in major U.S. shale plays, including companies like Continental Resources (CLR), Rosetta Resources (ROSE) and Encana (ECA), which all have stakes in major fracking areas [see also Top 5 Global Oil Stocks By Market Cap].
Investors looking for easy diversification can also consider the Market Vectors Unconventional Oil and Gas ETF (FRAK), which contains more than 40 different stocks from the United States, Canada and Australia. These companies receive at least half of their revenue from unconventional energy or hold a stake in properties that offer the same potential.
Of course, investing in fracking is a double-edged sword. Higher production levels may produce more revenues, but they could also put downward pressure on natural gas prices as supply increases. However, the industry hopes to make up for some of this excess demand by exporting natural gas, which could result in renewed demand from overseas buyers.
Finally, some investors may also want to consider investing in auxiliary industries that supply the fracking industry. For example, companies like Heckmann Corporation (HEK) provide water services to some of the country’s most prolific shale plays, while Canada’s Poseidon Concepts (POOSF) leases modular tank systems to the oil and gas industry.
Fracking has given the U.S. an enormous potential source of domestic energy, but that cheap energy comes with environmental and health costs. While fracking hasn’t become as popular abroad, the technology appears to be on the rise in many countries, even despite the previously mentioned temporary ban in Britain.
Investors looking to capitalize on the growing industry have many different options, ranging from an industry ETF to auxiliary industry suppliers. Investors should keep in mind that greater natural gas supplies could reduce the market price and potentially hurt companies operating in the space, while there’s also ongoing regulatory risk [see also 25 Ways To Invest In Natural Gas].
Posted by jackbassteam on November 11, 2012
http://amp2012.com/2012/11/11/guide-to-fracking-101/
English: Manitoba Highway 5 route marker, with buffalo removed (Photo credit: Wikipedia)
Oct . 31
Legacy Oil + Gas Inc.
LEG : TSX : C$6.85 BUY Target: C$11.25
COMPANY DESCRIPTION:
Legacy is a uniquely positioned, well-capitalized junior oil and natural gas company with a proven management team committed to aggressive, cost-effective growth of light oil reserves and production in the WCSB.
Event
Legacy provided an operational update characterized by incremental improvement in a number of core areas with respect to drilling time and drill costs, type-curve performance and initial production rates. A particular highlight included five Q3/12 Mississippian wells in the Alameda/Steelman area (targeting the Frobisher and Midale formations) that averaged IP30 rates of 440 BOE/d per well.
Well performance in the Bakken and Spearfish (both in Manitoba and North Dakota) continues to outperform management (and third-party engineer Sproule’s) type curves .
In total, the company drilled a robust Q3/12 program with 46 gross (36.2 net) wells and 100% success.
Impact
Positive While the tone of the release alludes to a potential beat
on the forthcoming Q3/12 results (to be released November 8, 2012), we
await the actuals prior to altering our estimates. We have made some
tweaks to our risked upside scenarios in the Spearfish (primarily related
to the inclusion of long, rather than short wells in our long-term
Manitoba assumptions, and reduced average well costs), though this has
not impacted our target price.
Recommendation
We are reiterating our BUY recommendation on Legacy, with an unchanged C$11.25 target price. Our target remains based on a 6.0x 2013 EV/DACF multiple supplemented by $3.05 of risked Bakken and Spearfish upside. Legacy currently trades at a 5.3x 2013 EV/DACF multiple and $82,127 per forecast BOE/d.
Posted by jackbassteam on October 31, 2012
http://amp2012.com/2012/10/31/legacy-oil-gas-inc-strong-bakken-shale-operational-upgrade-buy/
XTO Energy (Photo credit: Wikipedia)
Sept.21
Denbury Resources (DNR : NYSE : US$17.30)
Denbury announced it is selling its Bakken assets to ExxonMobil (XOM) and subsidiary XTO Energy for $ 1.6 B cash
subject to closing adjustments, and ExxonMobil’s operating interests in Webster Field in Texas and Hartzog Draw Field in Wyoming, both of which are ideal candidates for carbon dioxide flooding and close to Denbury’s existing or planned CO(2) pipelines. In addition, Denbury has agreed in principle to either purchase an interest in the CO(2) reserves in ExxonMobil’s LaBarge Field in southwestern Wyoming or purchase incremental CO(2) from that field, on terms and conditions to be mutually agreed upon by the parties.
The purchase of an interest in CO(2) reserves would reduce the amount of cash received by Denbury. Denbury intends to use the cash proceeds from the transaction to pursue the purchase of additional oil fields in the Gulf Coast or Rocky Mountain regions that are suited for CO(2) flooding, to fund capital expenditures, and/or to repay outstanding debt under its bank credit facility.
Additionally, Denbury plans to resume its stock repurchase program begun in October 2011 under which $195 million of the $500 million of authorized repurchases have been made. Assuming no additional assets are acquired with the cash proceeds in a manner that would qualify for like-kind exchange treatment for federal income tax purposes, Denbury estimates that its after-tax cash proceeds from the transaction will be approximately $1.1 billion.
Posted by jackbassteam on September 21, 2012
http://amp2012.com/2012/09/21/denbury-resources-sells-out-bakken-assets-to-exxon/
DeeThree Exploration (DTX : TSX : $5.73)
Shares of DeeThree Exploration continued to power to all-time highs as investors reward the company for their continued development success and robust reserve report released in late August 2012.
Keith Schaefer, editor of the Oil and Gas Investment Bulletin, has been very bullish on the name over the last year and still thinks there is more to come. In his last note, Schaefer commented that the company is currently being valued at approximately $75,000 per flowing barrel (pfb) and he believes that it could increase to $110,000 pfb as a result of continued success at the company’s Belly River and Alberta Bakken plays.
The company currently produces 5,000 barrels per day (bopd), with management guiding 2013 exit production at 9,000. He also commented that shallow (low-cost) production with high flow rates compared to other Canadian plays make DeeThree special.
Finally, “The beauty here is it’s still very early days for both these plays with lots and lots ofxrunning room left and hundreds of drill locations that will take a few years.” Now as long as the company grows only as fast as its balance sheet allows, then we could really be in business.
Posted by jackbassteam on September 18, 2012
http://amp2012.com/2012/09/18/deethree-exploration-bakken-play-continues-to-surge/
Crescent Point Energy (Photo credit: Wikipedia)
Crescent Point Energy* (CPG : TSX : $42.34)
August 10
Crescent Point swung higher as it once gain reported results that came in well ahead of expectations. The company reported Q2 production of 96,972 BOE/d and CFPS of $1.19, well ahead of consensus of 83,976 and $1.01 per share.
Operating, Transportation and G&A costs were in line with estimates, while lower realized prices were offset by lower than forecast royalties.
The company has increased the size of the Stoughton rail facility to handle 16,000 Bbls/d, which is at full capacity, with an additional 1,000 Bbls/d railed via a third party. Management has seen superior netbacks with dramatically reduced volatility with rail to date.
Further Crescent Point purchased Talisman’s (TLM) Shaunavon asset on June 1 for $343 million, which contributed 800 BOE/d towards production for the quarter.
The rest of the beat can be attributed to a milder-than-anticipated spring break-up (company had guided an 11,000 BOE/d shut-in, he was forecasting 8,000 BOE/d), spending $241 million versus his $150-million estimate, which delivered strong drilling results and arresting declines as a result of the company’s waterflood efforts in the Bakken and Shaunavon.
On the back of the solid beat, the habitual outperformer raised guidance to average 95,000 BOE/d from the prior 88,500 BOE/d and exit increased to be over 100,000 BOE/d from the prior 97,500 BOE/d (numbers which are likely very conservative given results to date).
The company also indicated that is has issued $300 million in 7-10 year term debt via a private placement at rates ranging from 3.39% to 4.76% during the quarter. Its bank line facility was increased from $1.6 billion to $2.1 billion with an additional $0.5 billion accordion feature. Based on current limit still has $1.1 billion in availability. Bottom-line: the company trades at a warranted premium, has executed on more than $2.1 billion of acquisitions YTD and will continue this trend. Has $1.1 billion of credit capacity ($1.6 with accordion) and paper that sellers want with a safe 6.6% dividend yield.
Posted by jackbassteam on August 11, 2012
http://amp2012.com/2012/08/11/crescent-point-energy-bakken-results-beat-estimates/
PetroBakken Energy (Photo credit: Wikipedia)
PetroBakken Energy Ltd.
PBN : TSX : C$13.11 Buy , Target C$19.50
August 10
• Quiet Q2 holds few surprises; reiterating BUY and Target to C$19.50
Event
PetroBakken reported Q2/12 results yesterday, with in line production of 38,715 BOE/d (the company pre-announced field estimates on July 9) with associated CFPS, f.d. of $0.62 relative to our $0.64 latest Bloomberg consensus of $0.66. The $0.02 difference in our estimate related to a 1% gassier production mix and higher operating costs.
We expect operating costs to fall back in H2/12 as production ramps and to stay lower in 2013 post-planned infrastructure buildout. July production is quoted at 38,250 BOE/d with production weighted to H2/12 as a result of 27 net wells awaiting completion or tie-ins and 14 rigs operating in the Bakken and Cardium.
Q2/12 activity was characteristically quiet, with only 9 net wells drilled in the quarter. Instead, the headline items included a $61 million non-cash impairment charge relating to the expiry of 45 net sections of Horn River acreage (the remaining land has tenure, though the company is in no hurry to spend money on gas prospects) and the appointment of George Gervais (formerly with ARC Resources since 1999 as VP Business Development and previously Manager of Engineering) as VP Exploitation.
Impact
Neutral. Operating costs should decrease on a per unit basis as they did in 2011 when the company ramped H2/12 production. We had previously forecast a Q3/12 average of 42,500 BOE/d, which while still possible given the stable of pending wells and rig activity, has been tempered in our forecasts to 40,875 BOE/d. No changes to our Q4/12 forecast (of 51,019 BOE/d) or our 2013 average production, although the carry forward of the 1% gassier mix (which we attribute to the growing percentage of production sourced from the Cardium) marginally reduces forecast cash flow.
Recommendation
BUY recommendation . Our target remains based on a 6.0x 2013E EV/DACF multiple supplemented by $3.52 of risked Bakken and Cardium upside. Management has reiterated its forecast exit rate of 52,000 to 56,000 BOE/d, which we believe is readily attainable, considering the precedent ramp-up in 2011.
Posted by jackbassteam on August 10, 2012
http://amp2012.com/2012/08/10/petrobakken-energy-ltd-update-target-19-50/
English: Point of Ayr Gas Terminal This terminal, owned by BHP Billiton Petroleum, processes gas extracted by the Liverpool Bay platforms via a 33 km subsea pipeline. The gas is then supplied to the Powergen combined cycle gas turbine (CCGT) power station, which went into operation at Connah’s Quay in July 1996. (Photo credit: Wikipedia)
August 5
Marius Kloppers is right to take his lumps.
The BHP Billiton chief executive has waived his 2012 bonus after the mining giant took a $2.8 billion writedown on some of its U.S. shale gas acreage. The hit looks small when compared with BHP’s $170 billion market cap, and wasn’t unexpected. But BHP paid almost $5 billion for the asset just 18 months ago. That’s embarrassing for a company that trades on its reputation as a canny operator.
In February last year, BHP’s purchase of 487,000 acres of Fayetteville shale reserves from Chesapeake Energy was seen as a breakthrough after a string of failed mega-deals. BHP is one of the few big miners to own a substantial petroleum business. Gaining a foothold in the U.S. shale revolution seemed to make good strategic sense.
The $4.75 billion price tag looked stretched from the outset. When the deal was announced it was already clear that booming shale production was creating a gas glut that would threaten the profitability of wells that mainly produce gas. At the time, U.S. gas prices stood at about $4.50 per million British Thermal Units, down by a quarter from 2010 highs. They plunged to below $2 per mbtu earlier this year. Even at today’s price of about $3 per mbtu, drillers are still losing money.
BHP’s decision to write down the Chesapeake assets suggests it doesn’t see the glut easing anytime soon. Like other gas drillers, it is shifting its focus to the more oil-rich shale deposits it acquired when it bought U.S. driller Petrohawk for $12 billion in July last year. That bigger, more ambitious purchase is not affected by the writedowns.
BHP is hardly the only company to fess up to overpaying for shale. Shell, BG and Encana Energy all took impairments in the second quarter. The 1.9 percent rise in BHP’s London-listed shares following the announcement suggests investors expected Kloppers to bite the bullet.
Still, the timing isn’t ideal. Rising costs and cooling demand mean BHP and other big miners are under pressure to return more cash or else explain how multi-billion dollar growth projects can still make attractive returns. In January, Deutsche Bank estimated that BHP would have to spend about $50 billion to achieve a near-fourfold increase in shale output by the end of the decade. The writedowns will make it harder for Kloppers to make his case.
Storage: The theoretical working storage is about 4,400 Bcf (though demonstrated capacity is close to 4,100 Bcf), and we are sitting on 3,217 Bcf as of July 27. Back in January, pundits were making prediction that an overfill scenario would take a mini-miracle to avoid. The latest EIA forecast points to a 4,000 Bcf storage peak scenario. Depending on weather going forward, it is very likely that we will come close to the 4,100 number that produces a scare much like 2009, when price dropped 42% in a month. One difference between stocks/bonds and hard commodities such as natural gas is that the prices are still largely representative of exchanges of physical goods. What this means is that if we approach the storage peak season in late October/early November with a level close to the physical storage limit, there is a danger that producers can scramble to offload gas causing a short-term panic.
Posted by jackbassteam on August 5, 2012
http://amp2012.com/2012/08/05/bp-writes-down-shale-gas-acerage-by-2-8-b/
Mutual Funds for Dummies …U.S. Funds at War — Too simple? (Monday, June 4, 2012) … (Photo credit: marsmet545)
August 3
To me, it’s intriguing that Schachter says the future for juniors is not so much in big Resource Plays in the near term. These are the tight oil plays like the Bakken, the Cardium, the Alberta Bakken, etc. that have a much larger size and lower risk than conventional, old-style pools of oil/gas. They have been the bread and butter of the junior energy sector in North America for the last three years. Companies couldn’t get financed without one.
“There is a future for the juniors but it’s in lower cost plays.” He says stock valuations are so low now that financing with new equity (issuing shares) is too expensive and dilutive. And these resource plays have voracious appetites for capital.
“New technology is really making a difference. (High cost) Horizontal wells have increased the “ante” of playing in the fairway. The main plays are not entry level plays for the juniors anymore. It’s now a science play, and who pays for that?
“When well costs in the Montney (a high-profile, liquid-rich gas play on the BC Alberta border—ks) are $6-$10 million, and these juniors have market caps of $30 million, they can’t do it. One bad well and you’re hurting, and two bad wells and you’re done.
“You need to find lower cost plays, where well costs are $2 million all in, that produce 75-100 barrels of oil a day.
“It’s a treadmill, slow process now; it’s not a home run game anymore. (Management teams should be saying) let’s spend 70% of budget for conventional slow production build and take 10-15% for the home run swing.”
Here are his four top junior stock picks, and he warns they could get cheaper before they get expensive:
Delphi Energy Corp (DEE-TSX; DPGYF-PINK)—“It’s liquid rich, and has new Montney wells this month, and lots of runway (large area of undeveloped land with low-risk drill locations—ks), and new (production) facilities they’ve put in. They’ll exit 2012 at 9500 bopd exit, maybe 10,000. DEE will have 28% of their production in Natural Gas Liquids.”
Guide Exploration Ltd (GO-TSX; GLNNF-PINK)— “They have 30% oil and Natural Gas Liquids, heading to 40%.”
Niko Resources (NKO-TSX; NKRSF-PINK)—“Niko has a big Indonesian portfolio (they’re starting to drill) now and have a chance for resolution of some issues in India, and they’re financed for 2 years. The wells, if successful, could be worth more than stock price. Everyone hates India and they’re excessively negative. To me it has low downside and upside into $70s in a good market.”
Western Zagros (WZR-TSX)—“They’re drilling the TLM zone. They’ll test it through the summer. I’m pessimistic on the market short term, but this could outperform. It has already doubled this year. The politics are still up in the air, but pipelines in Kurdistan Regional Government will be built to Turkey and they’re protected by Turkey. All that is helpful to the story.”
Schachter On Sterling Resources
The stock is now cheap again in the $1.16 range, and the company is going to be bringing on production from the
North Sea project where they own 30% and RWE, the big German utility, owns 70%.
There has been some cost overruns and that is why the stock has gone down. But the initial production starts up at
the end of this year, November/December, it ramps up over time so some time by Q2, Q3 of 2013, which effectively is a
year in the future, the company will be producing quite significant amounts of gas in the hundreds of millions of gross
net to them. You could be looking at $0.30 to $0.40 cash flow given the commodity price, which will be in the $9-$10
an mcf. Remember, UK process are those lofty prices which we don’t have in North America and if you look at some of
the announcements like Talisman and others, they have been getting $9.80 $9.90 in Q2 of this year as the reports are
coming out. So that $9-$10 number is pretty good.
They have hedged some of it, so you may want to put in a blended number of maybe $8.50 in your numbers, but that
still gives you pretty decent cash flow a year from now.
Secondarily, the company is planning to drill two wells in offshore Romania, one of them in October/November period,
Ionia, which is going to be with the jack-up rig and to add more resources so they can move that project forward and
sanction it for development phase.
Also, they are going to be drilling the oil play called Eugenia, which will be drilled in November/December. So
heading into the end of the year you have some exploration zizzle, you have cash flow kicking in materially by Q2/
Q3 of 2013 and then with the significant amount of cash flow coming in, some of it can be used for further development activity in Britain, some of it will be used because of course the banks want to get paid back for the project financing and then some of the money can be used for
new exploration plays which they do have a large inventory of.
The stock, after being beat up, is now in the cheap category, again we’re not thinking you have to urgently
buy it right now as that exploration drilling doesn’t kick in for a couple of months and we think that there might be
some weaker markets into that October/November tax loss window, and again this stock was sitting at $2.38 at
the high this year, and in Q1 of 2011 when we said to sell, it was $4.90
Pelletier offers a different tack for investors to consider.
He says the first movers in the energy sector will be the beaten-up large cap stocks. Small caps likely have another 6-12 months of living within their means—which means slower growth, because they can’t raise money to fund expansion.
He likes to actively manage his risk in energy stocks, and suggests there are two fairly simple way for retail investors to create a profitable trade, based on their own beliefs:
“At times oil and gas stocks will factor in a premium or discount to their commodity. For example, we calculate that oil companies are factoring in a $20 to $30 per barrel discount to current oil prices.
“So if you believe that the oil market is set for a recovery, then the cheaper buy is clearly Canadian oil stocks rather than owning oil itself.
“But if you’re worried about the broader market—and in particular oil prices—then you can short the spread. That means owning oil focused companies while shorting crude oil prices through an ETF. In a falling market, both oil prices and oil stocks will fall, BUT oil prices will fall faster than oil stocks. This will give you some downside protection to your portfolio.
“So if you want to own oil, it’s cheaper to own the stocks. You can do this trade by using ETFs—on the Toronto Stock Exchange, you would buy symbols XEG (a basket of senior energy producers that mirror the TSX index–ks) or COS (Canadian OilSands) which pays a very attractive 6% dividend) and buy HOD (that’s double levered).
“Investors can also do this exercise for natural gas versus natural gas focused companies as well. For example, Encana, is now trading at a 15-20% premium to the forward curve on gas prices.
“So if want to play a recovery in gas prices, it’s better to own the winter gas ETF on the Toronto Stock Exchange—HUN. Then you could short Encana to play the spread.”
Posted by jackbassteam on August 3, 2012
http://amp2012.com/2012/08/03/josef-schachter-4-picks-in-a-down-oil-sector/
