Replies to post #6290 on Chesapeake Energy Corp (CHK)

[Crusen]

Natgas should not be the primary trading factor for CHK.

The margins, i.e., the profits, are greater on oil.

So much so, that many oil producers just burn gas when they can get away with it.

So CHK, having so much gas to tend to, gets slaughtered on the costs of dealing with it when gas prices are low.

Now, some analysts are looking at falling supply meeting demand and rebalancing the market.

However, if Heating Degree Days, and hence demand, are again much lower than expected, that makes for a different result in the price of Henry Hub.

20-Feb 26:: Warm high pressure will dominate much of the US this week apart from the stormy West. As a result, temperatures will be quite mild with highs in the 50s to 80s, which is 15-30°F warmer than normal. Cooling will spread out of the West and across the central and then eastern US late in the week through the coming weekend. As a result, very light nat gas demand the next several days will increase to moderate levels by this weekend.

http://www.natgasweather.com