Chesapeake is forcasting production of about 260bcf per Q through 2012 and into 2013. So each move of +/- .10Mcf equates to +/- $26MM/perQ for CHK. So NG bouncing off $2 to $2.60 is moving nice. If Goldman's 2013 $4.10Mcf forcast is accurate that's around $390mm/per year more in opp. earnings on flat production. For all that's said about buy low sell high, companies never buy low. They tend to buy when the value becomes obvious, and if NG continues its move this will be obvious...So tomarrow i'll stick my hand into this buzz-saw and grab some more shares.
Increased wet liquids from gas wells and oil will help more than the extra 1/2 billion at most from gas. The leases must be drilled to maintain the lease rights or lose them so production will be ramped up to keep leases or sold to others who can do the drilling. The Higher Gas Prices are mostly the short term prices for 2012 that do little to help capital needs. Longer term prices appear to be going lower or stabilizing. Over all prices have recovered and bids might be marginally higher. This is a long term deal and could affect who owns these fields for several decades so prices near term are only a small part of the price. Development will be over a long span of time as not to over supply oil or gas and drive down prices again.