Energy & Commodities

Trading desks around the world are still buzzing from Thursday, Sept. 13’s announcement by the Federal Reserve that it will expand its mortgage-backed security purchase program to $40 billion per month for an unlimited period of time. The term de jour for this new game-changing policy among the pros is… Read More

Where are the best opportunities right now in natural resources?  The obvious answer is the companies that are digging the stuff out of the ground.  #-ad_banner-#But to find tomorrow’s next big winners, you also have to look at what’s hated. For example, no other natural resource has been shunned during the past few years quite like natural gas. Prices have rebounded sharply since April, but that’s nothing compared with where prices were before.  Shares of high-quality producers have barely responded — but that type of disconnect is always resolved in time.  Most… Read More

Where are the best opportunities right now in natural resources?  The obvious answer is the companies that are digging the stuff out of the ground.  #-ad_banner-#But to find tomorrow’s next big winners, you also have to look at what’s hated. For example, no other natural resource has been shunned during the past few years quite like natural gas. Prices have rebounded sharply since April, but that’s nothing compared with where prices were before.  Shares of high-quality producers have barely responded — but that type of disconnect is always resolved in time.  Most industry execs say natural gas will need to hit at least $5 per thousand cubic feet (Mcf) before they start revamping their budgets and directing more drilling rigs and resources back into gas fields such as the Haynesville Shale.  So we’ve got a long way to go before the industry turns up the production faucet. But if gas reaches $5 per Mcf, then cash flows should explode for low-cost producers like Ultra Petroleum (NYSE: UPL). The company can turn a profit with gas as low as $2.88 per Mcf… Read More