The case for NG equities
I compared the one year chart of three natural gas producers. They showed losses of:
Then I compared what the market assigned 1 year out pricing for the underlying commodity. That futures prices was $1.61
Now when you compare that to the one year out price today it showed a huge improvement of $.97 over last years future with the current 2021 futures trading at $2.59.
If the much lower futures last year justified a price anywhere from 68% to 2% higher than what the shares are trading at today, then the much higher futures prices given cost reductions and much higher futures expectation surely demand a price well in excess of what we saw last year at this time, though as the charts show they are actually much lower. I think we are looking at an emerging bull market for NG stocks.