We are not going to go into winter with anywhere near a full tank. ERF makes big profit off Nat gas. This is wher we usually start going up. We will see
The dividend program is not being cut. Only the method of paying the dividend is changing. Only cash now. Which is a sign of strength. No more dilution.
This is what I was pointing out. Well hedged during this temporary downtown. Nat gas much higher than one year ago too. That's where the profits for this company are anyway.
After being short WTI and Brent for a very long time Gartman announced today on CNBC he is going long WTI. Still short Brent. It may be hard to remember. Some 15 years or so ago WTI was a premium to Brent. Why? Value of the Dollar. As interest rates rise so will WTI and Natural Gas made in America. Gartman thinks it won't be long before WTI is again a premium to Brent. Go ERF..
Also did I hear Cramer say this morning Saudis are secretly pulling back on production of oil. Now that they shorted the market down its time to go long. They said we'd e back to $100 per barrel by the end of the year.
With the shoulder season almost over now is not the time to sell ERF.
Only 97, many on this board thought 120. Limited ability to get gas to storage. End up burning allot off.
New rules go into effect OCT 1 limiting burn off. Will shut down or curtail rigs going forward. Still way behind the 5 year average.
What if Ebla shuts down the Texas Oil fields. I know this sounds over the top but stranger things have happened. This could be a terrorist attack Jack Bauer style. To me there is nothing better for Gas and OIl than good old Canada based companies. They are out of the bullseye compared to Iraq, Saudi Arabia , the gulf etc.You still think there aren't Egyptians trying to blow up the Suez Canal. A dirty bomb made in IRAN could really hurt the Saudi Oil Fields. And don't worry these ISIL guys are starting to get #$%$ off on all these bombs were dropping but is not stopping there advance toward Bagdad. Oh and Putins Happy to let oil goto $60. HAHAHA. Everybody talks about glut but the last several weeks there have only been significant draw downs as compared to forecast, missing by millions of barrels. I've noticed in the charts that ERF usually drops in Sept and Octo ending with a low right about now till next week. Then it goes straight up. The shoulder season is almost behind us, Oh watch out for any late season weather disturbances. Fact is the Saudis basically own Macy's and many other Xmas retailers. I have seen this every year, especially election years. Price of oil goes down, gas prices go down. People spend at Macy's at triple the profit margin for the Saudis as compared to oil, then when you get your credit card bill in January prices start to go right up again. Apologize for any spell or gram errors.
Lets see in the last hour how the triple witching goes. I would suspect people will cover their bets on OIL an GAS. Both seem to be clawing backs from the lows. Tremendous buying op.