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Gassy Names Taking it Up the Gashole In Early 2012

posted Jan 11, 2012, 8:58 AM by Jeff Davies   [ updated Jan 11, 2012, 9:08 AM ]
Attached it an oil basket vs gassy basket showing ytd returns.  Needless to say, with the red-headed commodity taking out multi-year lows early in 2012, gassy equities are having a rough go of it through the first 7 trading days.  Some may think natty can't go much lower but when you've watched Rockies gas trade in the pennies not long ago due to lack of takeaway capacity/storage and the resulting gas-on-gas competition, its hard to argue it can't go materially lower from here.  Mother Nature is showing no motherly love for natty gas this winter.  She will need to bring a scorcher of a summer or full storage and prints at certain hubs well below the current $2.77/MMBtu will be likely this summer.