Natural Gas producers are in a race to see how much $ they can lose
This is the only commodity that sees higher production in the face of a permanent price plunge. If you must invest in this industry, buy a royalty trust that give monthly income and has no debt. If the price of gas goes up they will appreciate in value, but if it doesn't you at least have and income stream.
look at NDRO - they have a decent haynesville position (EXCO is operator) with only 1 well per section. They can add 7 more once gas goes up. In the meantime, they should increase oil out of permian soon. Much lower risk way to get long NG....Enduro, the sponsor, will probably be in the lead to JV w XCO my guess.....gl
Absolutely, they are actively managed and they hedge which makes it almost like an MLP. Very cheap with a great yield. I like MTR as well because they have Mancos shale land potential and have a good yield. Another great opportunity is Argent(angyf), this has been sold off(see Seeking Alpha articles to explain situation). Argent is a hedger as well to protect the distribution. All three of these have great upside and you get paid very well while you wait. XCO has considerable debt but these three have very low to ZERO debt.
The problem with being publicly traded is that they have to deal with shareholders who don't understand the nature of the business. Private producers can produce just enough to cover overhead, keep their leases in force & wait for a better marketing situation.
"The global market for shipped natural gas is entering key years of change in 2014 with several new buyers emerging while big new supplies will only slowly become available from 2015, resulting in a tight market for years to come ...
While some new supply sources are expected to ease the market somewhat by 2015, driven largely by new exporters from the United States and Australia, analysts say that a rise in LNG demand of around 7 percent a year until 2020 will still result in a tight market for most of the decade." (Reuters: "Global LNG Market to Remain Tight in 2014 and Beyond", Nov 18)