Post by
opta1 on Mar 26, 2013 4:07pm
increasing nat gas prices
SPY success and payout ratio will be affected by the increasing price of natural gas which is now about twice what it was this time last year. Many of the juniors have shut-in gas which should add to cash flow when reopened. Current US weather is much colder than usual and draws are being made from storage at a time when additions are usually made. The combination of these three companies may be well timed to take advantage.
Comment by
bigbank91 on Mar 26, 2013 4:25pm
thanks opta. says the cold could wipe out the glut in inventories that have built up as companies have decreased production. if that happens nat gas could be stable above $4. that would mean great gains on our hedges.
Comment by
bigbank91 on Mar 26, 2013 11:06pm
nat gas just hit $4. from the new cash flow forecasts . 2013 - based on $3.39 nat gas. with .50 increases equaling $8M extra. 2014 forecasts were based on $3.74. if nat gas can hold above $4 we could see even more gains. management has said it is going to get more hedges going this year at these high rates. those hedges will be able to pay down debt quickly.