Gas & Oil shares - A Natgas Buying Window near $2.50?

[drbubb]

Gas & Oil shares - A Natgas Buying Window?

A Buying Window near $2.50?

Natgas prices are highly Seasonal ... : seasonal prices :

Ratio: NG to WTI Crude

Top Natgas Producers / Top 40 Producers - Natural Gas Supply Association

CNQ / Can. Nat'l Res. vs.USO (oil), NGAS (natgas) ... 5yrs : 2yr :

ULP / UltraPetroleum etc ... update :

• ExxonMobil.
• Chesapeake Energy.
• Anadarko.
• Southwestern Energy Co.
• Devon Energy.
• Cabot Oil & Gas.
• ConocoPhillips.
• BP.

> Link-2016 : https://www.forbes.com/sites/rrapier/2016/08/12/the-top-10-natural-gas-producers/#673073f53005

[drbubb]

Looking at some Natgas shares - different size co's

RRC / Range Res. + APC, BTE ... update : w/SWN :

RRC

Sym. Company------ : Last-$ : E.P.S. PE-R : Yield : BkVal: MkCap: Debt: ebitda: EV.e D/ebi: Pr/BV
Bte.t Baytex Energy: C$2.00 : Neg.? N/A-: -N/A-: $5.70: $1.11b: 2.00b: $457M r6.70 r4.38: 35.%
CHK: Chesapke.Egy: $02.39 : Neg.? N/A-: 0.00%: (2.04) $2.15b: 9.81b: 2.20b: r6.67 r4.46: Neg.%
COG: Cabot O&G --- : $23.95 : $0.52 r45.7: 0.97%: $4.82: 10.33b: 1.29b: .951b: r5.93 r1.36: 496%
CRK: Comstock Res: $05.69 : -0.34 -N/A- : 2.13%: $4.92: 602.M: 1.24b: -N/A- : r00.0 r00.0: 116%
DVN: Devon Energy : $24.92 : $4.10 r6.08: 1.11%: 18.81: $11.7b: 6.05b: 3.16b: r4.63 r1.91: 132%
NBL: Noble Energy- : $20.64 : $2.58 r8.00: 2.00%: 21.47: $9.84b: 6.62b: 2.45b: r6.82 r2.70: 96.%
NFX: Newfield Expl.-: $16.30 : $2.61 r6.24: 0.00%: $9.44: $3.23b: 2.44b: 1.16b: r4.64 r2.10: 173%
PXD: Pioneer NatRs : 135.71 : $7.68 r17.7: 0.23%: 69.78: $23.1b: 2.29b: 2.50b: r9.57 r0.92: 194%
RRC: Range Res. ---- : $09.44 : $0.96 r9.86: 0.83%: 23.75: $2.31b: 4.16b: 1.13b: r5.71 r3.68: 40.%
SWN So'westernEgy: $03.80 : $0.88 r4.32: 0.00%: $3.82: $2.18b: 3.57b: 1.39b: r4.14 r2.57: 100%
UPL: Ultra Petroleum $0.637 : $.716 r00.0: 0.00%: (5.55) $1.26M 2.12b: 480M r4.66 r4.42: Neg.%
APC: Anadarko Pet. : $41.84 : $2.87 r14.6: 1.88%: 17.62: $21.1b: 17.8b: 6.41b: r6.18 r2.78: 237%
XOM: Exxon Mobil-- : $73.98 : $4.88 r15.2: 4.37%: 44.96: $313.b: 40.0b: 49.7b: r7.12 r0.80: 165%
XXX: Unknown Co. - : $00.00 : $0.00 r00.0: 0.00%: 00.00: $0.00b: 0.00b: 0.00b: r00.0 r00.0: 00.%
====

SWN: So'western Energy ... update : $03.80 : $0.88 r4.32:

[drbubb]

Energy Capital Markets Endure Worst Quarter This Decade

U.S. energy capital markets took a hit in 2018 with the upstream oil and gas industry bearing a greater brunt of the decline than any other sector, particularly at the end of the year.

A recent Drilling info report found total energy offerings last year were down 20% year-over-year. Combined, bond and equity deals raised $106.8 billion from 201 issuances in 2018 compared to the $133 billion raised from 271 deals in 2017.

During the fourth quarter, the energy sector raised about $20.1 billion through equity and debt offerings, down 4% sequentially and down 34% year-over-year. About $3.9 billion was raised from public stock offerings and $16.2 billion from bond issuances.

[drbubb]

Canadian Oil & Gas

BTE /Baytex Energy - etc. ... 2-years : 6mo / 10d :

• Suncor Energy.
• Canadian Natural Resources Limited.
• Encana Corporation.
• Husky Energy.
• Enbridge.
• Cenovus Energy.

Surge Energy ... all-data : 5-yr :

Sym. Company-- : Last-$ : E.P.S. PE-R : Yield: BkVal: MkCap: Debt: ebitda: EV.e D/ebi: Pr/BV
Bte.t Baytex Egy.-: C$2.00 : Neg.? N/A-: -N/A- : $5.70: $1.11b: 2.00b: 457M: r6.70 r4.38: 35.%
Sgy.t Surge Egy.- : C$1.27 : -0.02: N/A-: 7.70%: $3.29: $393M: 288M: 141M: r4.83 r2.04: 39.%
Cnq.t Can.NatRs C$34.14: $3.07 r11.1: 3.71%: 27.54: $41.0b: 19.7b: 11.1b: r5.38 r1.77: 124%
Cve.t CenovusEgy C$7.49 : -0.42: N/A-: 0.00%: 11.39: $9.20b: 0.00b: 0.00b: r00.0 r00.0: 66.%
Eca.t Encana------ : C$8.06 : -0.20: N/A-: 0.72%: $6.82: $7.68b: 4.43b: 1.79b: r6.41 r2.47: 118%
Enb.t Enbridge--: C$47.92 : $0.97 r49.6: 5.32%: 29.57: $96.9b: 63.7b: 10.4b: r15.9 r6.13: 162%
??? : Unknown --- :   $0.00 : $0.00 r00.0: 0.00%: 00.00: $0.00b: 0.00b: 0.00b: r00.0 r00.0:  00.%
====

[drbubb]

Canada - Royalty & Smaller Energy Co's

Sym. Company---- : Last-$ : E.P.S.: PE-R : Yield : BkVal: MkCap: Debt : ebitda: EV.e D/ebi: Pr/BV
Bte.t Baytex Egy. - : C$2.00 : Neg.: N/A- : -N/A- : $5.70: $1.11b: 2.00b: 457M r6.70 r4.38: 35.%
Sgy.t Surge Energy C$1.27 : -0.02: N/A- : 7.70%: $3.29:  393M: 288M 141M: r4.83 r2.04: 39.%
Aav.t AdvantageO.  C$1.90 : $0.03 r61.3:  N/A- : $7.02:  353M: 259M 139M: r4.38 r1.86: 27.%
Erf.t Enerplus Cp.: C$10.54 : $0.00 r18.1: 1.13%: -N/a : $2.52b: 0.00b 0.00b: r00.0 r00.0: 00.%
Pd.t  PrecisionDrill: C$2.60 : - 0.49: N/A-:  -N/A- : $5.89: 764M: 1.70b: 329M: r7.15 r5.17: 44.%
Pgf.t PengrowthE.:  C$0.74 : - 0.48: N/A-: 1.35%: $1.35: 412M: 706M 76.4M r14.6 r9.24: 55.%
Obe.t Obsidian/Pwt C$0.44: - 0.50: N/A-: -N/A- : $3.90: 233M: 394M 74.0M r8.30 r5.32: 11.%
??? : Unknown ----- :  C$0.00 : $0.00 r00.0: 0.00%: 00.00: 0.00b: 0.00b: 0.00b: r00.0 r00.0: 00.%
====

OBE /Obsidian vs- OIH, PGHef, SGY.t ... all-data : US$0.333 / C$0.44

Presentation : Nov.15th :

Web-Podcasts :

May.11th : Name-change and plans / stock was $1.14, C$1.45, OIH: x, USO: x, PGHef: x

Went down from >30 assets to 3 core assets; "A 30,000 bpd company"

[drbubb]

OBE / Obsidian, 2nd Close-up

OBE -vs- OIH, USO +bte ... since 4.1.18 : 1.1.18 :

Ratio: OBE-to-USO (etf for WTI crude, "US Oil")

Sym. Company----- : Last-$: E.P.S.: PE-R : Yield: BkVal: MkCap: Debt: ebitda EV.e D/ebi: Pr/BV
Obe.t Obsidian/Pwt C$0.44: - 0.50: N/A-: -N/A- : $3.90: 233M: 394M 74.0M: r8.30 r5.32: 11.%
OBE: Obsidian/Pwf : $0.33 : - 0.38: N/A-: -N/A- : $2.93:  -N/a- : 394M --N/a- : --n/a- --n/a : 11.%
svrgf SevenGens-- :  $7.68 :  $0.57: N/A-: 0.00% : $9.76: 2.72b: 0.00b: 0.00b:  -n/a- -n/a : 79.%
??? : Unknown ---- :  C$0.00 : $0.00 r00.0: 0.00%: 00.00: 0.00b: 0.00b: 0.00b: r00.0 r00.0: 00.%
====

WHY the Relative Weakness?

Obsidian Energy: Struggling To Keep Production Flat

Nov. 21, 2018 / 115 comments

About: Obsidian Energy Ltd. (OBE), Includes: SVRGF, YGRAF

Hervé Blandin

Long only, value, long-term horizon

Summary

The production and the cash flow keep on dropping while the net debt is increasing.

Management lowered the FY 2018 expectations. The 2019 guidance indicates a stable production with optional growth if oil prices improve.

Compared with Seven Generations, which operates a similar production mix with a lower debt, Obsidian's operating costs are much higher. Yet, the flowing barrel valuations are similar.

Obsidian (OBE) reported Q3 earnings and provided extra guidance during the November Investor Day. The situation is challenging.

During Q3, the production and the funds flow decreased while the net debt increased. And due to some lower-than-expected wells results, management lowered the FY 2018 production guidance and increased the expected costs.

Also, the company operates at much higher costs compared with similar producers.

Despite these issues, the flowing barrel valuations for Obsidian and Seven Generations (OTC:SVRGF) are similar. Yet, Seven Generations, with a comparable production mix, operates at much lower costs and its net debt to funds flow ratio is much lower.

===

SVRGF presentation : Link : website: https://www.7genergy.com/investors

[drbubb]

Seven Generations

VII ... update :

==

Sym. Company----- : Last-$: E.P.S.: PE-R : Yield: BkVal: MkCap: Debt: ebitda EV.e D/ebi: Pr/BV
Obe.t Obsidian/Pwt C$0.44: - 0.50: N/A-: -N/A- : $3.90: 233M: 394M 74.0M: r8.30 r5.32: 11.%
OBE: Obsidian/Pwf : $0.33 : - 0.38: N/A-: -N/A- : $2.93:  -N/a- : 394M --N/a- : --n/a- --n/a : 11.%
svrgf SevenGens-- :  $7.68 :  $0.57: N/A-: 0.00% : $9.76: 2.72b: 0.00b: 0.00b:  -n/a- -n/a : 79.%
??? : Unknown ---- :  C$0.00 : $0.00 r00.0: 0.00%: 00.00: 0.00b: 0.00b: 0.00b: r00.0 r00.0: 00.%

[drbubb]

USO Versus ... charts

1 / vs- BTE, VII.t :  Baytex : $1.57 (14.1% of $11.16-uso), / Seven Generations: C$10.20 (91.4%)

==

[drbubb]

Canadian Oil & Gas - w/ 1yr charts

Senior E&Ps / Integrateds
Can.Nat'l Res.    CNQ TSX DF $35.57 $45.00 BUY 4% 30% 32% 1.3x 1.6x 1.4x 1.8x 0.9x 1.2x 8.6x 6.6x 9.1x 8.6x 6.7x 9.3x 8.6x 6.6x 7.1x
CenovusEnergy CVE TSX DF $10.11 $12.00 Hold 2% 21% 39% 1.2x 1.5x 1.6x 1.9x 0.9x 1.1x 5.9x 8.5x 6.0x 5.7x 5.4x 6.0x 5.9x 8.5x 4.8x
Encana----US$-. ECA nyse DF $ 7.01  $  9.00 BUY  1% 29%  37%  n.a. n.a. 15.x 19.x 0.8x 1.0x 8.9x 5.9x 5.0x 9.7x 4.8x 5.7x 8.9x 5.9x 4.0x
Husky Energy -- HSE TSX DF $15.64 $17.00 Hold 2% 11% 15% 1.0x 1.1x 1.1x 1.2x 0.9x 1.0x 5.2x 4.2x 5.4x 5.2x 4.2x 5.4x 5.2x 4.2x 4.3x
Imperial Oil Ltd. IMO TSX DF $36.39 $40.00 Hold 2% 12% 13% 1.0x 1.1x 0.9x 1.0x 0.9x 1.0x 11.x 7.3x 11.x 11.x 7.3x 11.x 11.x 7.3x 6.5x
Suncor Energy--  SU- TSX DF $43.38 $55.00 BUY  3% 30% 19% 1.0x 1.3x 1.0x 1.2x 0.9x 1.1x 9.1x 7.0x 7.5x 9.1x 7.0x 7.5x 9.1x 7.0x 6.5x
--------------------------------------Avg Seniors Midcap avg 2% 22% 26% 1.1x 1.3x 3.5x 4.4x 0.9x 1.1x 8.1x 6.6x 7.3x 8.2x 5.9x 7.5x 8.1x 6.6x 5.6x

Midcaps (>50 mboe/d)
Baytex Energy- BTE TSX DF $ 2.17  $ 4.50  BUY 0% 107% 63% 6.0x  n.a. n.a. n.a. 0.5x 1.0x 6.7x 5.4x 4.8x 6.9x 4.8x 5.3x 6.7x 5.8x 3.8x
Birchcliff Egy. -- BIR TSX DF  $ 3.16 $ 4.25  BUY  3%  38% 42% 1.8x 2.4x 1.8x 2.4x 0.8x 1.1x 4.3x 4.4x 4.5x 4.7x 4.7x 7.0x 4.3x 4.4x 3.5x
CrescentPtEgy CPG TSX AP $ 3.70 $ 7.00 SpB 10% 99% 67% 0.4x 0.7x 0.3x 0.7x 0.5x 1.0x 3.2x 3.6x 3.9x 3.3x 3.1x 4.6x 3.2x 3.6x 3.4x
Enerplus Corp. ERF TSX DF $11.29 $16.00 BUY 1% 43% 11% 2.0x 2.8x 2.1x 3.0x 0.7x 1.0x 5.7x 3.9x 4.4x 5.6x 3.8x 4.8x 5.7x 4.0x 4.5x
Freehold Roy'l. FRU TSX DF $ 8.92  $11.50 BUY  7% 36%   7% 1.0x 1.3x 1.0x 1.3x 0.8x 1.0x 9.0x 9.1x 12.0x 9.0x 9.1x 12.0x 9.0x 9.1x 9.9x
Peyto Expl.&D. PEY TSX AP $ 6.84 $12.00  BUY 11% 86% 51% 1.5x 2.6x n.a. n.a. 0.9x 1.5x 3.7x 4.6x 5.2x 4.1x 7.0x 6.0x 3.7x 4.6x 5.3x
PrairieSkyRoyl PSK TSX DF $19.35 $23.00 BUY  4% 23%   0% 1.2x 1.5x 1.2x 1.5x 0.8x 1.0x 15.4x 20x 20x 15.4x 20.1x 20.1x 15.4x 20x 17.7x
Vermilion Egy.  VET TSX DF $32.29 $43.00 BUY  8% 42% 28% 1.3x 1.8x 1.3x 1.7x 0.8x 1.0x 9.6x 7.8x 6.9x 9.7x 6.8x 6.9x 9.6x 7.7x 6.3x
Whitecap Res. WCP TSX AP $ 4.57  $ 8.00  BUY  7% 82% 40% 0.9x 1.5x 0.8x 1.4x 0.6x 1.0x 5.9x 4.2x 5.3x 5.7x 4.0x 5.7x 5.9x 4.2x 4.8x
---------------------------Avg >50 mboe/d Midcap avg 6% 71% 43% 2.0x 2.0x 1.3x 1.8x 0.7x 1.1x 5.6x 4.8x 5.0x 5.7x 4.9x 5.8x 5.6x 4.9x 4.5x

===

> Canaccord's Energy Weekly

[drbubb]

Whitecap Res. WCP TSX AP $ 4.57  $ 8.00  BUY  7% 82% 40% 0.9x 1.5x 0.8x 1.4x 0.6x 1.0x

WCP.t ... 5yr-Log : 1 yr : Last: $4.51 +0.20, +4.64% (12mo Range: $3.80 to 10.355 )

: 1 yr : $4.51  (12mo Range: $3.80 to 10.355 )

==

[drbubb]

CNQ vs. Oil (USO) & Natgas (NGAS) :

Compare: 5yrs : 2yr / Other-5yr:

==

[drbubb]

EV/Eb & D/Eb
Senior E&Ps / Integrateds----- : $-Last : Mkcap: EV/eb: EV/D: Pr/BV :
Can.Nat'l Res.---CNQ T $35.57: $35.45: $42.6b: 5.55 : 0.00 : r1.29
Encana------------- ECA T $ 7.01 :  $08.50: $8.10b: 6.41 : 0.00 : r1.25
Suncor Energy-  SU- T $43.38 : $42.86: $67.7b: 6.59 : 0.00 : r1.54
CHK--------US$-- CHK N $ 7.01 :  $02.45: $3.96b: 6.68 : 0.00 : r N/A
===========

 

[drbubb]

SEEK NQ stocks

CNQ-etc: BTE, USO, VII.t, & SGY.t, ... update : 10d :

: 10d :

From these charts - Is VII / Seven Generations, getting cheap?

VII.t vs USO ... update :

A DROP on Big Volume.... must be some news, since oil stayed up

 

 

[drbubb]

Analyst Actions: Macquarie Lifts Baytex Energy to Outperform From Neutral

[drbubb]

Baytex is quietly rallying

BTE.t / Baytex Energy ... update : Last: C$2.42 +0.14

VII.t / Seven Generations ... update / Last: C$10.82 +0.53 - is also rallying

[drbubb]

On 3/22/2019 at 8:02 AM, drbubb said:

Oil has run into some possible resistance

USO / US Oil etf ... update: OIH : Oilb : OIH is also at poss, resistance at $18. OILB at $30 resistance

Some Oil stocks like Murphy Oil are also testing resistance

MUR ... update:

Energy-related shares are getting body-slammed today

OIH : $16.97 -0.78, -4.40%
USO : $12.17 -0.27, -2.17%
BPT : $26.16 -1.01, -3.72%
CNQ : $27.58 -0.87, -3.06%

Uranium-related is down too:
CCJ : $11.78 -0.33, -2.73%
URA : $12.36 -0.27, -2.14%
U.t - : $ 4.54 -0.10, -2.16%

Coal too
BTU : $29.45 -0.56, -1.87%

===> in edit: Here's what we saw after the Friday close

OIH : $16.95 -0.80, -4.50%
USO : $12.23 -0.21, -1.70%
XLE : $65.47 -1.82, -2.70%... update

==

[drbubb]

APC / Anadarko Petroleum versus USO / Oil ... update : 10d : $43.60 -0.86% / $12.25 +0.16% = Ratio: 3.56

Ratio .next day: $44.94 +3.07% / $12.47 +1.80% = Ratio: 3.60

[drbubb]

7G, DOWN but not out!

VII-etc / Seven Generations ... update : 10d :

VII.t vs. NGas (etf for Nat'l Gas) ... update :

The recent Fall in Natgas prices may be why VII is falling

Mostly seasonal? : seasonal :

I think the follow ratio will bottom soon - and could shoot up fast

VII.t to-NatGas

Earnings  reports were good.  But the last quarter, not so good (see next)

[drbubb]

7G: " Earnings  reports were good.  But the last quarter, not so good "

Seven Generations delivers $1.67 billion of adjusted funds flow, or $4.60 per share, up 36 percent in 2018

Proved plus probable reserves valued at $12.3 billion by independent reserve evaluator as of December 31, 2018

/ Note: at C$9.00, MktCap.= C$0.00 Bn./

February 28, 2019

CALGARY, Alberta--(BUSINESS WIRE)-- 2018 HIGHLIGHTS

• 2018 adjusted funds flow of $1.67 billion or $4.60 per share, representing a per share increase of 36 percent compared to 2017.
• 2018 net income of $440 million, $1.21 per share. Operating income of $574 million, $1.58 per share, up 76 percent versus 2017. As of December 31, 2018, 7G’s trailing 12-month return on capital employed was 12.9 percent and its cash return on invested capital was 19.1 percent.
• 2018 sales volumes were 16 percent higher than 2017, averaging 202,600 boe/d, with liquids representing 60 percent of 7G’s total production. Condensate sales of 76,400 bbls/d increased by 25 percent in 2018. Fourth quarter condensate sales were 81,800 bbls/d, total liquids sales were 129,200 bbls/d, and total sales were 215,100 boe/d.
• 7G’s market access initiatives drove fourth quarter natural gas realizations to $4.77 per Mcf due to the company’s marketing arrangements in the US Midwest, Gulf Coast and Eastern Canada.
• 2018 capital investments were $1.77 billion. Drilling and completion costs per-well were reduced by 10 percent year-over-year.
• 7G completed its natural gas processing facility at Gold Creek on time and under budget. The facility successfully tested its 250 MMcf/d design capacity during December.
• Year-end gross proved plus probable (2P) reserves of 1.64 billion boe were valued at $12.3 billion as at December 31, 2018, on a before-tax net present value basis, at a 10 percent discount rate, by McDaniel & Associates Consultants Limited (McDaniel), the company’s independent qualified reserves evaluator. At 2018 production levels, this represents a 22-year reserve life index.

Surpassing the 200,000 boe per day milestone

“Our hard-working team delivered excellent technical, operating and financial performance in 2018, achieving a significant milestone – annual average production that exceeded 200,000 boe/d. Capital investments of $1.77 billion remained within our capital guidance range as we grew daily production by 16 percent to 202,600 boe/d and enhanced the value of our assets through disciplined scientific analysis and successful delineation drilling,” said Marty Proctor, 7G’s President & Chief Executive Officer.

Enhancing asset value with disciplined self-funded investment in 2019

“Assuming a WTI oil price of US$50 per bbl and a Henry Hub natural gas price of US$3.00 per Mcf in 2019, we plan a self-funded capital program of $1.25 billion, about $500 million less than the 2018 program. This 2019 capital plan maintains annual average production above 200,000 boe/d while continuing to enhance the value of our asset base through further delineation of the lower Montney and development of the Nest 3 and Nest 1 areas of our Kakwa River Project. Our strategy in this commodity price environment includes lower growth that mitigates production decline rates and preserves our top-tier drilling inventory, disciplined execution to improve operating and capital cost efficiencies, infrastructure investments to lower operating costs and expand margins, plus delineation drilling to increase our inventory and maximize lower Montney value,” Proctor said.

[drbubb]

MORE CHARTS

I think the follow ratio will bottom soon - and could shoot up fast

VII.t to-NatGas -Last 12 months - Support at 3.5 ratio?

USO /US Oil etf ...has popped up over a LT moving average

Chart ... update : w/CNQ :

FOCUS on SWN / Southwestern

SWN-etc ... chart : $4.60

[drbubb]

Energy Stocks: BTE & VII

As usual, when the magic starts working, I wish I had done more near the Lows

BTE - VII ... update : C$2.51, +5.02% / C$10.04  +1.31%

[drbubb]

MUR etc package

MUR-etc ... update : 10d /

[drbubb]

RRC & SWN

Range Resources is looking very cheap ... fr.1/2014 : fr.Feb.2018 :

RRC-etc ... fr. 10/1/2018 : 10d :

RRC to-Natgas

==

From Presentations

RRC : XX shares x $0.00 = $xxB enterprize value

> pg.15 = https://rangeresources.gcs-web.com/static-files/648c3d37-4a3f-4f8f-a334-14be3d4ddfa3

[drbubb]

USO vs Canadian Oil stocks

CanO-1 : update : w/o USO / sites: FRU , pr :

CanO-2 : update :

xx

CCD report : download :

[drbubb]

NatGas got down to $2.31

Why Dallas Cowboys owner Jerry Jones is betting big on natural gas

Dallas Cowboys Opens a New Window. owner Jerry Jones Opens a New Window. knows a winner when he sees one.

Jones, who made a $140 million bet on the Cowboys franchise 30 years ago (today the team is worth almost $5 billion, according to Forbes) is now looking to do the same thing in the struggling natural gas sector.

Jones-controlled Comstock Resources is acquiring rival Covey Park Energy in a $2.2 billion deal, with the Dallas businessman putting up $475 million of his own money toward the deal. The move is a big bet on what may be this century’s most important global commodity, natural gas.

Jones, as reported by the Wall Street Journal, said that “I believe in natural gas in a big way, I don’t know of any individuals…that have put the kind of money out as I’ve put in this thing.”

Oh, sure you might say that the natural gas sector is beaten and battered, and its best days are behind it. Of course that’s also what they said about the Cowboys in 1989.

Jones saw something then in the struggling franchise, which has become the most valuable team in the NFL, according to Forbes. And today he is correctly seeing a big opportunity in the natural gas sector.

"I am excited to provide the funding and to team up with Denham Capital to combine the two companies to create the basin leader in the Haynesville shale. This combination is another step toward completing my vision to create an industry leading natural gas company,” Jones said in an online statement.

Of course, in the short-term, Jones may find making money on shale oil and gas may be as challenging as winning in the NFL. Record U.S. production and the lack of pipeline capacity has made it difficult or impossible to make profits.

Investors have been badly bruised, and many have given up on the sector. The Wall Street Journal points out that natural gas prices have fallen over 19 percent this year. Many analysts are predicting an endless era of low prices.

Jones understands that low prices eventually cure low prices...

> more: https://www.foxbusiness.com/features/dallas-cowboys-owner-jerry-jones-natural-gas