Tuesday, August 4, 2009

Chesapeake CEO McClendon on Natural Gas Prices

I was just reading the Chesapeake conference call and found this interesting quote from CEO Aubrey McClendon about gas prices:

Yes, 675. So I would expect let's say, let's call it around 900 than with another 200 working on oil projects and I think you will see gas prices in the $6, $7, $8 range. There is a lot I like about 2010. I think it is all setting up right now and there is going to be a lot of kind of wailing and gnashing of teeth here on the next 60 days as we get full on storage but after that you got an improving economy. You’ve got oil at $12 per Mcf gas equivalency. You’ve got decline curves starting to kick in pretty aggressively. You’ve got every E&P company that I have watched pretty scared about gas prices so, and you got a net expected short position that will have to turn
around at some point.

So I think it is all shaping up to be a pretty favorable summer of 2010 and you're not likely to get weather as unhelpful as it has been this summer with New York having the second coldest summer since 1888 I think, and Chicago having the fourth coldest summer since 1935 or something like that. So our hope is that that foreshadows a little colder winter and we would suspect next summer would be a little warmer. We like 2010 and, we're looking forward to getting there.

Its nice to get some insight from people pretty plugged into the situation.

Disclosure: Long UNG

1 comment:

Anonymous said...

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