UnThreaded | Threaded | Whole Thread (21) | Ignore Thread Prev | Next
Author: Valuemongeragain One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77099  
Subject: Re: OT: EEQ/EEP Date: 2/21/2013 10:36 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 8
I can't add any particular insight to pipelines or MLPs in general, but natural gas and to a lesser extent petroleum are things I think I know.

Natural gas prices have been in a funk for several years now. After a year or so mostly in the $2's, they are now in the low $3's which still is not particularly profitable for producers. To make matters worse, NG prices have been so low for so long that most producers have burned through higher hedges that had been protecting them to some extent from the lower prices.

I review the following link every Thursday that lists U.S. natural gas storage numbers.

http://ir.eia.gov/ngs/ngs.html

Storage numbers, indicating the weekly draw typically from November through March and the weekly injection typically from April through October, are to me the sum of all supply and demand factors.

The first weekly report of this year blew the lights out taking over 200 bcf out of storage, this is unusual for a week in late December to early January when so many institutions are closed. The next 2 weeks while not as good, were still above the 5 year average. So after the first three weeks beating the 5 year average, the next 3 weeks have been been below the 5 year average.

Early this year, I looked at a lot of NG producers and all seemed overpriced or fully priced for a modest increase in NG prices. Last year I also looked at CHK when that company was beaten down due to some management issues, although it had a significant drop it didn't appear to me to be a great bargain.

Oil prices, although down $5 over the last week, are good enough to be quite profitable. I would focus on the Oils and not the NG producers.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (21) | Ignore Thread Prev | Next

Announcements

Related Boards
Real Estate Investing
This is a great board for Real Estate other than REITs.

Buying & Selling a Home
Get your personal advice about mortgages, agents, etc. here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement