In a new report this week, Bernstein analyst Bob Brackett spelled out the firm’s long-term outlook for natural gas stocks. While Brackett believes that natural gas is in for several more years of depressed prices, he also discusses what could be the “light at the end of the decade” for natural gas beyond 2020.
Five-Year Outlook
After putting together Bernstein’s five-year projected natural gas supply/demand model, Brackett describes the firm’s 12-month outlook for gas prices as “somewhat constructive.” Brackett sees a slight tightening of the natural gas overhang during the next year, enough to push prices toward the $4/mcf level. However, investors looking for prices significantly higher than that level might have a while to wait.
Supply/Demand Growth
Bernstein is…
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