Don, I don't know, yesterday, I would have told you we will back up, but today it feels like it will go further before a move down.
Just looked at Ultra's CC transcript, a microcosm of the nat gas state, they have massive amounts of gas at Pinedale and Marcellus. They wrote off billions of reserves at $2 gas, but at $6 gas, their 3 P reserves would be worth $19 billion vs an enterprise value of $4.5 billion today, so you buy now and make 4x your investment by '16, wish it was that easy. But they did have free cash flow last year and plan to have it again this year. Would be a good bet, but who wants to sit on a no yield investment for three years. They don't see much more gas until prices get to $5, drilling won't come back. Good to here spending within cash flow. Their cash costs are $1.35 and all in costs are $3, that's got to be the best in the business, although SWN, RRC and COG probably get close. Still think ATLS/ARP might be a good nat gas inv waiting on $6 gas, at least you make 10% yield while you wait. And lots of properties coming to market. Good for LINE also, anyone who can find the capital. Was impressed with Ultra, seems they are hunkered down for the turn.
hare.. if you lend me the money for nothing i will do it.. ha ha
this is the typical responce of the DC crowd.. don
looking back at MDU ng bills in Dec of 2005 i paid $ 11.50 per mcf for the NG ( this does not include the distribution charge or the .30 cents per day billing)
in Sept of 2013 MDU charged me $ 4.00 per mcf for NG ( again not including the distribution charge or daily charge.. ) The Same NG from the same Cedar Creek field of ND/MT. approx 35 miles SW of Bowman ND..
So the fortunes can and will change.. don