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Direxion Daily Natural Gas Related Bullish 3x ETF (GASL)

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  • Today, 5:52 AM
    • Global trade in liquefied natural gas (LNG) will exceed $120B in 2015, surpassing iron ore as the most valuable commodity after oil, Goldman analysts say.
    • Competition among producers will increase as buyers shift away from long-term contracts. U.S. supplies coming online and other factors will lead to declines in LNG prices "until they can challenge thermal coal in the fuel mix of the power sector, with Europe playing the role of the swing consumer and the U.S. as the marginal supplier in the Atlantic basin," the report says.
    • ETFs: UNG, DGAZ, UGAZ, BOIL, GAZ, FCG, GASL, KOLD, UNL, MLPG, DCNG
    | 3 Comments
  • Wed, Feb. 11, 3:39 PM
    • For years deep-value investor Richard Pzena (PZN -0.6%) has been preaching of the opportunities in financial services and mature tech, and now he's adding energy to that list.
    • Not ready to hit the "buy" button yet (though he does own and is comfortable with positions in major integrated oils), Pzena and crew are spending their time digging deep into companies to understand the nuances of their business models and financial strength.
    • "Our investment team is working overtime researching the full range of companies in the industry including the major integrateds, exploration and production companies, servicers and drillers. We believe we have time on our side as our long-term view of oil prices of $60 to $80 per barrel is not out of line with consensus."
    • Pzena Investment Management earnings call transcript
    • ETFs: XLE, ERX, VDE, OIH, XOP, ERY, FCG, DIG, PBW, GASL, DUG, IYE, XES, IEO, QCLN, IEZ, PXE, PXI, FENY, PXJ, PSCE, RYE, PUW, FXN, DDG, HECO
    | 3 Comments
  • Wed, Feb. 11, 11:57 AM
    • Pavilion analysts think the consensus has gone from being overly optimistic about the earnings of major energy companies such as Exxon (NYSE:XOM), Chevron (NYSE:CVX) and ConocoPhillips (NYSE:COP) to being too pessimistic.
    • The firm sees earnings expectations that are now lower than the realized earnings in 2008 when oil prices went as low as $33/bbl; six months ago, analysts expected the sector earnings to grow nearly 10% in a year., but they are now expecting the largest earnings decline on record.
    • ETFs: XLE, ERX, VDE, OIH, XOP, ERY, FCG, DIG, GASL, DUG, IYE, XES, IEO, IEZ, PXE, FENY, PXJ, RYE, FXN, DDG
    | 14 Comments
  • Wed, Jan. 28, 3:59 PM
    | 11 Comments
  • Tue, Jan. 6, 10:59 AM
    • A warm start to winter is disappointing investors who bet U.S. natural gas producers would offer a refuge from falling oil prices, as gas futures settled at a two-year low $2.882/MMBtu yesterday after dropping 32% in 2014.
    • Among the 10 worst performers on the S&P’s Exploration & Production Index since June 20 - when oil was $107.26/bbl and gas was $4.53 - seven are companies that produce more than 50% gas; since June 20, Chesapeake Energy (CHK -1.3%) has declined 37%, Range Resources (RRC -0.7%) has dropped 41%, and Southwestern Energy (SWN -1.6%) has plunged 45%.
    • The gas market “looks terrible” for 2015 and “has been structurally oversupplied for years," Raymond James analyst Marshall Adkins says as he cuts his forecast for average 2015 Henry Hub gas prices to $3/Mcf from $3.65, citing normal weather that will “unmask the bearish underpinning of the U.S. gas market."
    • ETFs: UNG, DGAZ, UGAZ, BOIL, GAZ, FCG, GASL, KOLD, UNL, DCNG
    | 19 Comments
  • Mon, Jan. 5, 12:18 PM
    | 71 Comments
  • Dec. 26, 2014, 10:30 AM
    • After plunging earlier this month, Henry Hub natural gas futures fell below $3/mmBtu this morning - their lowest levels since Sep. 2012 - before slightly rebounding. January futures are now right at $3.00/mmBtu.
    • Still-growing production and a relatively warm December have been taking a toll. Analyst Aaron Calder: "This market continues to look oversupplied ... We are seeing support at $3 but I would say that once we break that I think $2.70 is probably our lower technical target." He thinks low prices will eventually "provide some sort of floor," as electricity production shifts to gas from coal, but adds recent EIA inventory data suggests "it's going to be a while coming."
    • BNP Paribas expects inventories to hit a new high of more than 4T cubic feet by the end of Oct. 2015. The firm has cut its 2015 average gas price forecast by $0.15 to $3.60/mmBtu.
    • ETFs: UNG, DGAZ, UGAZ, BOIL, GAZ, FCG, GASL, KOLD, UNL, NAGS, DCNG
    | 11 Comments
  • Dec. 22, 2014, 10:45 AM
    • Natural gas prices fall 9.5% to near two-year lows at $3.133/mmBtu, in the biggest one-day percentage loss since February and the lowest intraday price since January 2013, on mild weather forecasts and inventory that is above year-ago levels.
    • Prices are now down more than 15% in three straight losing sessions and are 30% lower than the six-month high closing price of $4.489/mmBtu it hit just a month ago.
    • Weather has been unseasonably warm for December, limiting demand for home heating and allowing relatively low stockpiles to catch up to where they were a year ago and encouraging traders to sell based on the belief that supply is relatively healthy.
    • Gas producers are among the biggest early decliners: XOM -1.1%, CHK -7.3%, APC -2.6%, SWN -6%, DVN -2.2%, COP -2.3%, BP -1.5%, COG -4%, BHP -1.9%, CVX -1.3%, ECA -5.1%, EQT -4.3%, RDS.A -1.7%, UPL -12%, WPX -6.9%, EOG -1%, OXY -1.1%, RRC -6.1%, APA -2.3%, AR -3.2%, CNX -3%, QEP -4.8%, LINE -4.9%, NBL -1.6%, SM -2.6%, XEC -4.2%, PXD -2.9%, NFX -5.1%.
    • ETFs: UNG, DGAZ, UGAZ, BOIL, GAZ, FCG, GASL, KOLD, UNL, NAGS, DCNG
    | 47 Comments
  • Dec. 11, 2014, 10:45 AM
    • Investors in giant gas export terminals from Australia to Canada are facing the prospect of losing nearly $250B plowed into the projects during the past seven years, as weaker oil prices threaten to wipe out returns.
    • Oil-linked pricing means LNG producers stand to get much less revenue than expected on delivery of their first shipments, and oil prices have fallen so low that U.S. shale gas producers with plans to export the usually cheaper fuel to Asia suddenly find themselves facing a much tougher competitive environment.
    • LNG prices in Asia have sunk below $10/MMBtu, while most Australian LNG projects would need to sell the commodity for at least $12-$14 to break even; for example, the breakeven point for the $54B Gorgon project under construction by Chevron (NYSE:CVX), Exxon (NYSE:XOM) and Shell (RDS.A, RDS.B), is ~$17.7/MMBtu.
    • Other relevant tickers: LNG, TOT, COP, CEO, FCG, GASL, OTCPK:BRGXF, OTCQX:BRGYY, OTCPK:STOSF
    | 19 Comments
  • Dec. 10, 2014, 3:49 PM
    • OPEC no longer exists in any meaningful sense and crude prices will slump to $50/bbl over coming months as market forces shake out the weakest producers, Bank of America warns.
    • Francisco Blanch, BofA’s commodity chief, says OPEC is “effectively dissolved” after it failed to stabilize prices at its last meeting, and “the consequences are profound and long-lasting.”
    • At least 15% of U.S. shale producers are losing money at current prices, and more than half will be under water if U.S. crude falls below $55, the bank says, adding that the high-cost producers in the Permian basin will be the first to feel the pain and may have to cut back on production soon.
    • Following the 40% drop in oil prices, "the bulk of the damage to the sector is now done," Deutsche Ban's Lucas Herrmann says, "but it's hard to see what's going to drive share prices higher."
    • Nevertheless, Herrmann upgrades BP to Buy from Hold, citing the likelihood that its troubles in the Gulf of Mexico and Russia will see a turning point in 2015.
    • ETFs: XLE, ERX, VDE, OIH, XOP, ERY, FCG, DIG, GASL, DUG, IYE, XES, IEO, IEZ, PXE, FENY, PXJ, RYE, FXN, DDG
    | 23 Comments
  • Dec. 2, 2014, 5:37 PM
    • Top gainers, as of 5:15 p.m.: BV +8.1%. GASL +4.3%. GWRE +3.2%. REI +3.0%. DNR +2.8%.
    • Top losers, as of 5:15 p.m.: PBYI -16.9%. OVTI -5.9%. MPLX -2.8%. GOL -2.5%. UVXY -2.3%.
    | 1 Comment
  • Dec. 2, 2014, 10:33 AM
    • BofA Merrill Lynch downgrades the energy sector to Marketweight following OPEC’s decision to maintain rather than cut production, now seeing $70-$75 as Brent crude's 2015 range, while warning of value traps.
    • "With the collapse in crude, the sector now trades at a 20% discount to the S&P 500, where it has historically traded in-line with the market," the firm says, "but further estimate cuts are likely to come, [as] prices are falling faster than earnings are deteriorating."
    • Seeing WTI possibly falling as low as $50 in the coming month, BofA warns that "volatility in oil prices translates to volatility in earnings."
    • For exposure to the sector, the firm prefers big, lower beta stocks such as Exxon Mobil (XOM +0.5%).
    • Citi also cautions against assuming that oil prices have found a bottom, and wants to see a more thorough confirmation of a technical base of support before proclaiming anything more than the latest trading bottom; however, Citi's Scott Gruber recommends moving aggressively on oil services if WTI crude falls into the $50s - his top picks, in order, are Baker Hughes (BHI +0.1%), Halliburton (HAL -1.3%) and Weatherford (WFT +2.7%).
    • ETFs: XLE, ERX, VDE, OIH, XOP, ERY, FCG, DIG, GASL, DUG, IYE, XES, IEO, IEZ, PXE, PXI, FENY, PXJ, RYE, FXN, DDG
    | 13 Comments
  • Nov. 28, 2014, 7:25 AM
    • OPEC yesterday decided to hold production numbers despite the bear market in oil. WTI crude is down about $5 per barrel to $69.
    • A premarket look at the top 10 holdings of the XLE: Exxon Mobil (NYSE:XOM-4.1%, Chevron (NYSE:CVX-4.1%, Schlumberger (NYSE:SLB-4.6%, ConocoPhillips (NYSE:COP-4.4%, EOG Resources (NYSE:EOG-4.3%, Pioneer Natural Resources (NYSE:PXD-4.8%, Occidental Petroleum (NYSE:OXY-4.3%, Haliburton (NYSE:HAL-4.7%, Anadarko Petroleum (NYSE:APC-5%, Williams Companies (NYSE:WMB) -1.6%.
    • ETFs: ERX, VDE, OIH, XOP, ERY, FCG, DIG, PBW, GASL, DUG, IYE, XES, IEO, QCLN, IEZ, PXE, PXI, FENY, PXJ, PSCE, RYE, PUW, FXN, DDG, HECO
    | 54 Comments
  • Nov. 20, 2014, 11:59 AM
    • With crude at $75/bbl - the price Goldman Sachs says will be the average in next year's Q1 - 19 U.S. shale regions including parts of the Eaglebine and Eagle Ford in Texas are no longer profitable, according to data compiled by Bloomberg.
    • At least a dozen companies including Continental Resources (NYSE:CLR) and SandRidge (NYSE:SD) said on conference calls in the past month that they would reduce capital spending plans because of lower prices; Apache (NYSE:APA) said today it would cut spending in North America by 25% while still increasing production 8%-12% vs. an annual average of 29% since 2009.
    • By contrast, the biggest-producing fields - North Dakota's Bakken and the Permian and Eagle Ford in Texas - pump a combined 4.7M bbl/day, and those regions remain economic at $55-$65/bbl.
    • ETFs: XLE, ERX, VDE, OIH, XOP, FCG, ERY, DIG, GASL, DUG, XES, IYE, IEO, IEZ, GASX, PXE, FENY, PXJ, RYE, FXN, DDG
    | 25 Comments
  • Oct. 2, 2014, 2:35 PM
    • Liquefied natural gas projects in Africa, Canada and Australia face delays or even cancellation as global demand growth slows and U.S. output increases, Goldman Sachs says in a new report.
    • Worldwide demand for LNG will grow 5%/year compounded by 2020 and 4% by 2025, the firm says after previously forecasting growth of 6% and 5%, respectively.
    • Even the U.S. will not be spared from the pullback given the substantial contracts signed in recent years with U.S. LNG projects, Goldman says, adding that "investors should seek exposure to low-cost LNG export capacity, and be realistic about expectations for further contracts.”
    • Several projects in Canada and Australia likely will face deferrals due to uncertain production costs and price-sensitive buyers, with Papua New Guinea having perhaps the lowest risks as it expands LNG production, Goldman says.
    • "Given the industry’s renewed focus on capital discipline in recent times, we are observing a number of high-cost LNG projects deprioritized in the investment queue by major companies" such as Chevron (NYSE:CVX), Royal Dutch Shell (RDS.A, RDS.B), BG Group (OTCPK:BRGXF, OTCQX:BRGYY) and Exxon (NYSE:XOM).
    • ETFs: UNG, DGAZ, UGAZ, BOIL, GAZ, FCG, GASL, KOLD, UNL, GASX, NAGS, DCNG
    | 10 Comments
  • Sep. 30, 2014, 4:06 AM
    • The U.S. is set to become the world’s largest producer of liquid petroleum, with output likely to exceed Saudi Arabia’s this month or next for the first time since 1991.
    • U.S. production of oil and related liquids such as ethane and propane was level with Saudi Arabia in June and again in August at about 11.5M barrels a day, according to the International Energy Agency.
    • U.S. crude oil production in August was still lower than both Saudi Arabia and Russia, but overall U.S. leadership in petroleum is accounted for by its higher production of natural gas liquids such as ethane and propane.
    • ETFs: UNG, DGAZ, UGAZ, BOIL, GAZ, FCG, GASL, KOLD, UNL, GASX, NAGS, MLPG, DCNG, USO, OIL, UCO, SCO, BNO, DTO, DBO, CRUD, USL, UWTI, DNO, DWTI, SZO, OLO, TWTI, OLEM
    | 5 Comments
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GASL Description
The Direxion Daily Natural Gas Related Bull 3x ETF seeks daily investment results, before fees and expenses, of 300% of the price performance of the ISE Revere Natural Gas IndexTM. There is no guarantee the fund will meet its stated investment objective.
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