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Here’s How to Profit From
Rising Natural Gas Prices
Photo credit: Flickr/Nicholas A. Tonelli
Natural gas prices rebounded in 2014
A rough winter caused a big spike in gas prices.
This was great news to
producers levered to
natural gas.
Most levered to natural gas:
1. Southwestern Energy (NYSE: SWN): 100% of its
production mix is natural gas.
2. Ultra Petro...
This produced strong returns to start the year.
That makes these “pure-
play” producers the best
way to profit from rising
gas prices in the future.
Southwestern Energy
Fourth largest natural gas producer in the United
States as Southwestern produced 657 Bcfe last year.
Southwestern Energy
Fourth largest natural gas producer in the United
States.
Southwestern Energy
Key facts:
• Discovered the Fayetteville Shale in
Arkansas/Oklahoma and holds 905,684 net
acres in tha...
Ultra Petroleum
A top-20 natural gas producer, Ultra Petroleum
expects to produce 243-253 Bcfe in 2014.
Ultra Petroleum
Fourth largest natural gas producer in the United
States.
Ultra Petroleum
Key facts:
• Focused on long-life, low-cost tight gas in
Wyoming’s Pinedale and Jonah Fields as well as
th...
Cabot Oil & Gas
A top-10 natural gas producer as Cabot expects to
produce 530-585 Bcfe in 2014.
Cabot Oil & Gas
Fourth largest natural gas producer in the United
States.
Cabot Oil & Gas
Key facts:
• Low-cost position in the best spot in the
Marcellus Shale yields triple digit internal rates
...
Investor takeaway
Southwestern Energy, Ultra Petroleum and Cabot
Oil & Gas are loaded with natural gas reserves in
low-cos...
OPEC’s Worst
Nightmare
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Here’s how to profit from rising natural gas prices

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While many energy producers are diversifying into oil Southwestern Energy, Ultra Petroleum and Cabot Oil & Gas remain the most levered “pure-plays” on natural gas.

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  • https://www.flickr.com/photos/nicholas_t/7770508920/in/photolist-8Qt9W3-cQDTzJ-g1KQ9p-g1KHa3-g1KZ7p-7CPBy3-g1KxNh-g1KXpN-8UcDK2-gwmN7H-gwmAC2-g1KNQJ-g1Ljrp-g1EDcJ-gwmFi5-g1L3vt-aCMuQG-g1LfMa-g1KTUv-g1L9Ub
  • http://www.swn.com/investors/LIP/latestinvestorpresentation.pdf
  • http://www.swn.com/investors/LIP/latestinvestorpresentation.pdf
  • http://www.swn.com/investors/LIP/latestinvestorpresentation.pdf and http://www.swn.com/investors/Press_Releases/2014/NiobraraPressRelease.pdf
  • http://www.swn.com/investors/LIP/latestinvestorpresentation.pdf
  • file:///C:/Users/Owner/Downloads/Citi%20Energy%20Conference%20May%2014%202014%20-%20MDW.pdf
  • file:///C:/Users/Owner/Downloads/Citi%20Energy%20Conference%20May%2014%202014%20-%20MDW.pdf
  • http://www.cabotog.com/wp-content/uploads/2014/05/COG_Citi_2014.pdf
  • http://www.cabotog.com/wp-content/uploads/2014/05/COG_Citi_2014.pdf
  • file:///C:/Users/Owner/Downloads/Citi%20Energy%20Conference%20May%2014%202014%20-%20MDW.pdf
  • Transcript of "Here’s how to profit from rising natural gas prices"

    1. 1. Here’s How to Profit From Rising Natural Gas Prices Photo credit: Flickr/Nicholas A. Tonelli
    2. 2. Natural gas prices rebounded in 2014 A rough winter caused a big spike in gas prices.
    3. 3. This was great news to producers levered to natural gas.
    4. 4. Most levered to natural gas: 1. Southwestern Energy (NYSE: SWN): 100% of its production mix is natural gas. 2. Ultra Petroleum (NYSE: UPL): 97% of its production mix is natural gas. 3. Cabot Oil & Gas (NYSE: COG): 95% of its production mix is natural gas.
    5. 5. This produced strong returns to start the year.
    6. 6. That makes these “pure- play” producers the best way to profit from rising gas prices in the future.
    7. 7. Southwestern Energy Fourth largest natural gas producer in the United States as Southwestern produced 657 Bcfe last year.
    8. 8. Southwestern Energy Fourth largest natural gas producer in the United States.
    9. 9. Southwestern Energy Key facts: • Discovered the Fayetteville Shale in Arkansas/Oklahoma and holds 905,684 net acres in that play. • Growing position in the Marcellus Shale. • Recently entered into the liquids-rich Niobrara play in Colorado.
    10. 10. Ultra Petroleum A top-20 natural gas producer, Ultra Petroleum expects to produce 243-253 Bcfe in 2014.
    11. 11. Ultra Petroleum Fourth largest natural gas producer in the United States.
    12. 12. Ultra Petroleum Key facts: • Focused on long-life, low-cost tight gas in Wyoming’s Pinedale and Jonah Fields as well as the Marcellus Shale of Pennsylvania. • Recently acquired an oil-rich position in the Uinata Basin of Utah. • 5,150 future drilling locations.
    13. 13. Cabot Oil & Gas A top-10 natural gas producer as Cabot expects to produce 530-585 Bcfe in 2014.
    14. 14. Cabot Oil & Gas Fourth largest natural gas producer in the United States.
    15. 15. Cabot Oil & Gas Key facts: • Low-cost position in the best spot in the Marcellus Shale yields triple digit internal rates of return. • Solid position in the oil-rich Eagle Ford Shale. • More than 3,000 future drilling locations in the Marcellus Shale imply a drilling inventory of more than 25 years.
    16. 16. Investor takeaway Southwestern Energy, Ultra Petroleum and Cabot Oil & Gas are loaded with natural gas reserves in low-cost shale plays. That has each well positioned to profit from rising natural gas prices in the future. While all are pursuing growth outside of gas, each will continue to remain very levered to natural gas over the long-term.
    17. 17. OPEC’s Worst Nightmare
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