The NG gas business is experiencing a Paradyme shift. One indicator is, of couse, NG inventory levels. But inventory doesn't gauge the volume of NG being generated and sold. The truth is, the volumes are much higher, the earnings for NG companies will be significantly higher due to these new volume levels. That's the beauty of natural gas industry right now: New found reserves combined with higher demand and uses for NG equal more volume production for XTXI.
XTXI will benefit from cold winter for heating and hot summer for power generation. Utility power companies have geared up to buy more NG for gas powered plants.
I have a family member who works in the field in the Central Texas region for a large E&P company. He was told a month ago to prepare for the shutdown of existing, producing wells, due to an anticipated drop in the price of NG. this could mean nothing. If this means anything, it is that bigshots (@ one company) are calling for a lowering of supply due to anticipated poor demand. This could be because greater imports of liquified NG from abroad, current inventory excess, or even some factor outside of the energy business, like a double dip recession. It could be any number of known factors, plus a dozen unknown ones. Crosstex is a cork floating in a sea of news, and it's rise or fall goes both ways. One must not look at the next wave that comes along and assume it is a tsunami.
(sound of bomb falling) The pumpers in here aren't taking their own advice, or they are crying thru the gloats. It has been painful to watch this slo-mo crash. I have nailed every number in the last week.
hey ss, since you are so sure on this one, what will it do next week? I have some extra cash lying around and would like to pick up some more on another big dip...is that going to happen? happy trading