Q: Do you think conditions for Nat Gas to go higher from here over next 1-2 years is likely?
I currently hold position in PEY as my only nat gas exposure (2% weighting). Looking to increase that exposure for income and growth, so wondering which of BIR or TOU you would choose to hold over 2-3 year timeframe? Or, would positions in both, or perhaps another nat gas stock, make sense alongside PEY? Thx
I currently hold position in PEY as my only nat gas exposure (2% weighting). Looking to increase that exposure for income and growth, so wondering which of BIR or TOU you would choose to hold over 2-3 year timeframe? Or, would positions in both, or perhaps another nat gas stock, make sense alongside PEY? Thx
5i Research Answer:
We think a trifecta of PEY, TOU and BIR would make the most sense. We would be comfortable owning all. PEY still has some hedges in place, which can limit upside at times but also reduce price risk. Gas prices are hard to predict, with storage and weather being big swing factors. But we think the general trend over the next 18 months should be higher. It is down more than 70% from the high and we think sentiment is so weak that any positive developments could see the price move higher.