Natural Gas Forward Prices Plummeting Amid Ample Storage Builds, Mild Temps - GoHaynesvilleShale.com2024-03-29T04:44:42Zhttps://gohaynesvilleshale.com/forum/topics/natural-gas-forward-prices-plummeting-amid-ample-storage-builds?commentId=2117179%3AComment%3A4034694&feed=yes&xn_auth=noPublic E&P companies show…tag:gohaynesvilleshale.com,2022-10-22:2117179:Comment:40347002022-10-22T14:15:55.258ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>Public E&P companies show some discipline to maintain high prices and it's because of ESG. I don't believe that claim. And if it was so, the industry media would be reporting it. The publicly traded companies were warned by their financial partners that if they over produced and crashed prices one more time, they would find it difficult to borrow. Wall street, investors and stockholders wanted better stock prices, paying down debt and stock buy backs. All of that plays into…</p>
<p>Public E&P companies show some discipline to maintain high prices and it's because of ESG. I don't believe that claim. And if it was so, the industry media would be reporting it. The publicly traded companies were warned by their financial partners that if they over produced and crashed prices one more time, they would find it difficult to borrow. Wall street, investors and stockholders wanted better stock prices, paying down debt and stock buy backs. All of that plays into E&Ps exhibiting some discipline this time around. The publicly traded companies are the ones leading the way on ESG.</p>
<p></p> Got some evidence to back up…tag:gohaynesvilleshale.com,2022-10-22:2117179:Comment:40345952022-10-22T13:00:10.690ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>Got some evidence to back up the statement that "public" companies are drilling fewer wells? I haven't seen any indication of that in industry media. In general, permitting and drilling is up across the board. As it is every time commodity prices spike.</p>
<p></p>
<p>Got some evidence to back up the statement that "public" companies are drilling fewer wells? I haven't seen any indication of that in industry media. In general, permitting and drilling is up across the board. As it is every time commodity prices spike.</p>
<p></p> Depends on your definition of…tag:gohaynesvilleshale.com,2022-10-21:2117179:Comment:40344212022-10-21T23:58:23.425ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>Depends on your definition of "fabulous". Through all the downturns in price, caused by lack of corporate discipline and associated supply gluts, the unconventional natural gas energy learned how to produce an mcf for a lower and lower cost. Longer laterals, shorter stages, different perf cluster designs and spacing, greater proppant loads and re-fracking older wells when adjacent new wells are drilled. </p>
<p>When prices were around $3/mcf, a number of Haynesville companies bragged about…</p>
<p>Depends on your definition of "fabulous". Through all the downturns in price, caused by lack of corporate discipline and associated supply gluts, the unconventional natural gas energy learned how to produce an mcf for a lower and lower cost. Longer laterals, shorter stages, different perf cluster designs and spacing, greater proppant loads and re-fracking older wells when adjacent new wells are drilled. </p>
<p>When prices were around $3/mcf, a number of Haynesville companies bragged about ROI in the range of ten to fifteen percent. Yes, well costs of gone up (they always do when times are good) but imagine what the ROIs are at $4, $5, $6 and, I almost hesitate to say it, $9. The Haynesville play has another 20 good drilling years ahead of it and another 15 to 20 of economic production. I don't pay attention to the NYMEX Futures forward strip. I think that any price above $3.75 to $4.25 will keep the Haynesville humming along. Enjoy the price spikes but don't get too worried when the price goes back to a lesser range.</p>
<p></p> so, our next two checks will…tag:gohaynesvilleshale.com,2022-10-21:2117179:Comment:40344162022-10-21T23:46:39.738ZSteve Phttps://gohaynesvilleshale.com/profile/StevePorter
<p>so, our next two checks will be “fabulous” and then we get back down into the reality level. I’m just thankful for what I’m getting, thankful that my grandfather bought this land in the early 1900’s, that my father never sold any of it, and, despite the fact that, other than deer hunting (which I don’t do) the land has little value other than the NG lying down below. And thankful that I’ll pass it on to my sons when I’m dead and gone (and with specific instructions on what they can and…</p>
<p>so, our next two checks will be “fabulous” and then we get back down into the reality level. I’m just thankful for what I’m getting, thankful that my grandfather bought this land in the early 1900’s, that my father never sold any of it, and, despite the fact that, other than deer hunting (which I don’t do) the land has little value other than the NG lying down below. And thankful that I’ll pass it on to my sons when I’m dead and gone (and with specific instructions on what they can and can’t do with it).</p> LOL! Now Les, that's a glass…tag:gohaynesvilleshale.com,2022-10-21:2117179:Comment:40346942022-10-21T21:06:38.545ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>LOL! Now Les, that's a glass half empty attitude. Personally I think that $5.467 sounds quite good. For a comparison -</p>
<p>Here are the yearly average prices for 2014 to 2021. So far 2022 is averaging 6.783.</p>
<table width="100%">
<tbody><tr><td></td>
<td><p>4.415</p>
</td>
<td><p>2.664</p>
</td>
<td><p>2.456</p>
</td>
<td><p>3.108</p>
</td>
<td><p>3.086</p>
</td>
<td><p>2.628</p>
</td>
<td><p>2.077</p>
</td>
<td><p>3.841</p>
</td>
</tr>
</tbody>
</table>
<p></p>
<p>LOL! Now Les, that's a glass half empty attitude. Personally I think that $5.467 sounds quite good. For a comparison -</p>
<p>Here are the yearly average prices for 2014 to 2021. So far 2022 is averaging 6.783.</p>
<table width="100%">
<tbody><tr><td></td>
<td><p>4.415</p>
</td>
<td><p>2.664</p>
</td>
<td><p>2.456</p>
</td>
<td><p>3.108</p>
</td>
<td><p>3.086</p>
</td>
<td><p>2.628</p>
</td>
<td><p>2.077</p>
</td>
<td><p>3.841</p>
</td>
</tr>
</tbody>
</table>
<p></p> Ouch..oh well...$9 NG was nic…tag:gohaynesvilleshale.com,2022-10-21:2117179:Comment:40344122022-10-21T21:01:03.231ZLeshttps://gohaynesvilleshale.com/profile/Les
<p>Ouch..oh well...$9 NG was nice while it lasted!</p>
<p>Ouch..oh well...$9 NG was nice while it lasted!</p>