I think the price of natural gas is going to rise, but I don't know what companies might benefit. Any suggestions would be appreciated.
2007-11-12 14:04:36 · 5 answers · asked by Houyhnhnm 6 in Business & Finance ➔ Investing
I'd be open to ETF's also.
2007-11-12 14:08:20 · update #1
I have had sempra stock for years, and it has had consistent gains each year.
2007-11-12 16:55:36 · answer #1 · answered by Hannah's Grandpa 7 · 1⤊ 0⤋
My pick is Chesapeake Energy (CHK). Be careful because there is another Chesapeake company out there that is NOT an energy company.
The stock fell today, so it might go down some more. Be cautious.
Also, it is not a particularly "hot" stock (good but not hot), partly because the company routinely "hedges" the selling price of their gas. This smoothes out the variation in gas prices over a period of months. Plus, the dividend is tiny.
There are other companies: XTO, Southwestern ...(SWN I think), or maybe Conoco Philips (COP). The last one is a big integrated oil company. All of the major oil cos. sell nat. gas, but COP has much more nat. gas, as a percentage, compared to any of the others.
You could actually buy the natural gas itself by buying the ETF having the ticker UNG.
2007-11-12 14:22:26 · answer #2 · answered by Tom H 4 · 2⤊ 0⤋
It depends upon the amount of risk you want to take. Williams and Chesapeake are good "safe" companies to hold. I like them both.
However, I think it is noteworthy to mention a couple of small cap companies that are great deals in this weak market and should be seeing great news soon and are semi related to the above two company's successes as they own adjacent leases to both companies mentioned above.
GeoPetro Resources GPR is going to significantly increase production in the next month at its sour gas property in Madisonville, Texas by over 200%. This property is close to Chesapeake's leases who had much success in the deeper Bossier formation 10 miles to the northeast which the company have not drilled yet.
Dejour DEJ had net pay finds of 254 and 263 ft in a lease adjacent to Williams lease which is currently in production in the Piceance area in Colorado . The wells are awaiting testing. The company also owns 37 % of Titan Uranium stock in Canada.
I think both of these small cap companies have been significantly derisked.
2007-11-13 11:38:12 · answer #3 · answered by scow_sailor1692 3 · 1⤊ 0⤋
Williams Companies WMB
2007-11-12 14:29:36 · answer #4 · answered by jeff410 7 · 2⤊ 0⤋
Mariner Energy is my top pick NYSE: ME ... good exposure in the Gulf and low debt compared to peers; very good projections for reserve replacement and key exposure in the Gulf of Mexico.
http://finance.yahoo.com/q?s=ME
http://www.businessweek.com/investor/content/oct2007/pi2007108_534631.htm?campaign_id=yhoo
Also like ATP oil and gas NASDAQ: ATPG. Another solid growth company with increasing reserves, excellent rigs, and good exposure in the Gulf.
2007-11-12 16:52:20 · answer #5 · answered by Anonymous · 1⤊ 0⤋