Canaccord Genuity on U.S. Natural Gas: Lowering 2012/13 Forecasts to ~$2.75/$4.00
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Canaccord Genuity on U.S. Natural Gas: Lowering 2012/13 Forecasts to ~$2.75/$4.00
Analyst, John Gerdes, said, "Given the severity of the oversupply imbalance that developed last winter, we are lowering our ’12 gas price forecast ~$0.75 to ~$2.75. In ’13, robust gas supply growth associated with oil-directed drilling and a partial reversal in power sector fuel switching back to coal from gas suggests a $4 price, $0.50 lower than our prior estimate. We are maintaining our long-term $5 gas price outlook. The marginal cost of supply outside the Marcellus requires a $5 price though we admit the estimate has modest downward bias."
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Analyst, John Gerdes, said, "Given the severity of the oversupply imbalance that developed last winter, we are lowering our ’12 gas price forecast ~$0.75 to ~$2.75. In ’13, robust gas supply growth associated with oil-directed drilling and a partial reversal in power sector fuel switching back to coal from gas suggests a $4 price, $0.50 lower than our prior estimate. We are maintaining our long-term $5 gas price outlook. The marginal cost of supply outside the Marcellus requires a $5 price though we admit the estimate has modest downward bias."
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