I read that ECA has hedged the price of NG for 2013 and perhaps longer in the mid to low $4 range. I agree with their assessment that NG prices are not going to move higher until supply and demand dynamics change. There is simply too much NG for the current demand.
Just to be clear the losses you are talkign about were accounting losses related to the trailing 12 month natural gas prices. Not exactly under company control. And operating earnings and cash flow were pretty good considering the carnage in nat gas pricing, and they are ramping liquids production (a little late but will till be a positive).
ECA has 25 percent hedged for 2013. They can bring new production on line as well. Haynesville for example can be rapidly ramped with resumption of active drilling program and is low cost supply.There are no hedges yet for 2014.
Thanks for the info. I think NG has much potential but it is also in very large supply. That is my concern. Is NG just a commodity in such great supply that it's price remains depressed? I don't know but, if it is, then ECA and other NG companies may have trouble making as much money as I hope they will.