04-07-2016, 09:26 PM
(03-31-2016, 01:15 PM)rapidacid Wrote:(03-27-2016, 04:54 PM)Dividendsrule Wrote: Simply put, their price assumptions when they announced the deal were higher (i.e. they thought oil would be higher than it is now). But, I'm still happy with the pivot to natural gas. Good to have a nice foothold as the boom comes on.
Can you expand on this please?
Sure Rapidacid,
A simple catalyst here, 30% of the US energy grid runs on coal. Now that coal is basically becoming illegal, you need to fill the gap with something. Natural gas seems to be where many grids are going, along with renewables of course. But natural gas seems to be a bigger chunk of it, and the majors are getting behind it as well.
More granularly, enjoy this article
http://seekingalpha.com/article/3707626-...gas-prices
and this short video, brand spanking new, from Bloomberg
http://www.bloomberg.com/news/videos/201...g-squeezed