Weakness in natural gas prices in NA spells opportunityhttps://michaela34.substack.com/p/weakness-in-natural-gas-prices-in?utm_source=twitter&sd=pf As an investor, I think natural gas is a sound bet if you select low cost, low debt E&P companies like Birchcliff (BIR), NuVista (NVA), Tourmaline (TOU) and Canadian Natural Resources (CNQ). I admire Peyto (PEY) for its low cost structure but think it has not paid enough attention to debt reduction preferring to pay high dividends. I am not a fan of ARC Resources (ARX) despite its excellent asset base owing to what I see as weak financial management. Tiny debt free Pine Cliff (PNE) is a good long term hold although its dividend is vulnerable if the company wants to remain debt free during a slump in gas prices.
I hold 125,000 shares of Birchcliff and nominal positions in Tourmaline, Peyto, ARC and Pine Cliff. I also hold a few shares of Precision Drilling (PD) which I see as a beneficiary of any increase in drilling activity and quite profitable at current rig utilization rates.