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Article: Spot gas prices could sink below $1.50/MMBtu, Salomon says. (Salomon Brothers Inc.)
- Article from:
- The Oil Daily
- Article date:
- April 4, 1994
- Author:
CopyrightCOPYRIGHT 1994 Energy Intelligence Group. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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WASHINGTON -- Companies leveraged to natural gas prices may be an even riskier investment than those leveraged to the price of crude oil, according to one investment house.
Spot wellhead prices may drop below $1.50/MMBtu to remain competitive with depressed residual fuel prices in the next two months, devaluing natural gas stocks, according to a report by Salomon Brothers Inc.
"Investors are used to low oil prices," but the weakness in natural gas prices could take many by surprise, said Salomon Brothers analyst Thomas Driscoll.
Salomon has downgraded the stocks of seven companies that depend heavily on gas prices: El Paso Natural Gas Co. and Panhandle ...