2024-04-01 14:11:51 ET
Summary
- The natural gas market in 2024 is expected to be even tougher than in 2023, with prolonged low prices causing financial hardship to high cost producers.
- Producers are signaling for production cuts in 2024 to help balance supply and demand while awaiting the anticipated LNG boom.
- Investors should focus on Appalachian producers for potential price recovery, due to low break-even costs and moderate liquid contents.
- I present two producers, Range Resources and EQT Corporation, as eventual winners in a natural gas rebound by the end of 2024.
Thesis
It's no secret that the commodity space for natural gas ( NG1:COM ) has had a challenging 2023. Now, 2024 looks to be even tougher. Prolonged prices at sub $2.00/mcf has the potential to create long term damage to the balance sheet of high cost producers.
Many producers have signaled for slight production cuts in 2024 in an attempt to preserve capital. Producers hope to bring balance to the supply and demand curve while they await the highly anticipated LNG boom that is projected to start by the end of this year....
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For further details see:
Appalachia Is The Place To Invest For A Natural Gas Recovery