- Natural gas prices have done pretty much nothing over the last month while natural gas producers have inched higher.
- The startling divergence is signaling to us that the market is looking at forward balance projections for natural gas producers.
- The key point, however, is that natural gas producers remain undervalued relative to the price curve.
- Summer balances will be undoubtedly tighter than last year due to higher LNG exports. The big variable on how tight it will be dependent on power burn demand.
- We are long EQT and see an upside to $24.85.
For further details see:
Natural Gas Producers Remain The Best Investment Vehicle To Play Higher Natural Gas Prices