New Report Bridges the Gap Between Commodity and Equity Market Analysis in the U.S. Natural Gas and Natural Gas Liquids (NGLs) Markets
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Centennial, CO – June 8, 2017 – East Daley Capital Advisors, Inc., an energy assets research firm redefining how markets view risk in midstream and exploration and production (E&P) companies, released a new report signaling the need for a major correction to U.S. natural gas prices due to prolific production expectations from the Marcellus and Utica shale formations in the Northeast, which is now clashing with growth expectations in the Permian region in the Midcontinent. The newly released Part Two of the report, “Righting A Wrong: The Marcellus/Utica Balanced on a Knife’s Edge,” dissects the interconnection between energy market fundamentals and a company’s financial performance to create a unique and comprehensive market outlook.
“Given the current forward curve, U.S. natural gas supply and demand are extremely unbalanced, with total U.S. supply outpacing demand by a staggering 11 Bcf/d by the end of 2019,” said Justin Carlson, VP and Managing Director, Research at East Daley Capital. “This signals a necessary price correction to incentivize incremental natural gas demand to help absorb the new production, much of which is expected to be produced in the Northeast and the Permian.”
Part One of this report focuses on growth limitations in Northeast Marcellus. Part Two of this report analyzes southwest Marcellus and Utica as well the implications on the rest of the country due to production growth in the Northeast. Producer guidance in the Northeast suggests production will grow by 14.5 Bcf/d by 2019. However, the Marcellus and Utica are not without competition as East Daley expects fundamentals will slash northeast growth to 11 Bcf/d as natural gas prices adjust to accommodate surging associated gas production in the Permian. The implications of this analysis also extend to investors, midstream companies and commodity market players outside the region as the Marcellus and Utica will put substantial pressure on other producing regions.
“Basins like the Rockies, Haynesville and the Fayetteville need to pay close attention to what happens in the Northeast as those tier 2 and tier 3 basins are facing an uphill battle for market share and will most likely need to reduce their growth and earnings expectations,” said Carlson. “The U.S. natural gas market is entering into an intense era of gas-on-gas competition where only the best positioned will survive.”
Key findings from Part Two (released June 2017) include:
Key findings from Part One (released May 2017) include:
Companies covered in this report include:
Part One –
Part Two –
Appalachian Midstream Partners
Boardwalk Pipeline Partners
Ascent Midstream Partners
Cabot Oil and Gas
Blue Racer Midstream
Cardinal NE Midstream II
Chesapeake Energy Corporation
Columbia Midstream Group
Chief Oil and Gas
Energy Corporation of America
Energy Transfer Partners
Energy Transfer Partners
Howard Energy Partners
National Fuel Gathering
Gulfport Energy Corporation
Repsol Oil and Gas Canada
Royal Dutch Shell
Rice Midstream Partners
Southwestern Energy Company
Utica East Ohio Midstream
William Pipeline Partners
East Daley’s asset-level allocation model, combined with in-depth analysis, brings greater transparency to the midstream energy financial market by providing investors with deeper, more accurate data to inform their investment decisions.
For a complimentary copy of the overview of Righting a Wrong, Part Two, please email firstname.lastname@example.org.
About East Daley Capital Advisors, Inc.
East Daley Capital is an energy assets research firm that is redefining how markets view risk for midstream energy companies. In addition to using top-level financial data to predict a company’s performance, East Daley delivers asset-level analysis that provides comprehensive, fact-based intelligence. Supported by a team of unbiased, experienced research analysts, East Daley provides its clients unparalleled insight into how midstream companies operate and generate cash flow. East Daley uses publicly available fundamental data and intersects that data with a company’s reported financials to asset-level cash flows. The result allows for more informed portfolio decisions. Founded in 2014, the company is based in Centennial, Colorado. For more information visit http://www.eastdaley.com.
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East Daley Capital
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