Because of the timing of the decrease in natural gas prices, and a “timely hedge book,” exploration and production (E&P) companies mostly have “coasted” through 1Q2012’s borrowing base season, but there may come a point when commercial banks may not continue to use a lending gas price deck well above strip prices, the energy team at Raymond James & Associates Inc. said last week.
Coasted
Articles from Coasted
Credit for Gas-Heavy Drillers Expected to Contract
Because of the timing of the decrease in natural gas prices, and a “timely hedge book,” exploration and production (E&P) companies mostly have “coasted” through 1Q2012’s borrowing base season, according to energy analysts with Raymond James & Associates Inc. However, commercial banks may not continue to use a lending gas price deck well above strip prices, wrote Kevin Smith, John Freeman and Justin Albert in a note to clients.
April 24, 2012
Despite Weak Finish, Futures Notch First $4.00-Plus Expiry
In what has become almost a routine, natural gas futures coastedto another sizeable gain Friday as traders bid up the June contractin an expiration-day buying frenzy. With no fresh news in which tosink their teeth, traders were content to chew on concerns thatstorage is growing at too slow a pace to match predicted demandlevels, both this summer and next winter as reasons for the rally.Becoming the first contract to post a final settlement above $4.00,the June contract notched an impressive 17-cent gain to settle at$4.406 after peaking at $4.50 during a volatile final 30 minutes oftrading.
May 30, 2000
Listen to the latest episode of our newest podcast NGI's Hub and Flow via:
