How To Buy Cheap Natural Gas Assets With A High Dividend Yield

As the price of a barrel of oil continues to trade around $100 per barrel, the price of natural gas has plummeted like a rock. Natural gas is currently trading at $2.33 million BTUs (British Thermal Units). Usually, the price of gas to oil is 6:1 but with natural gas trading at $2.33 and oil around $100 the ratio is 43:1. Natural gas hasn't been this cheap since 2002. There are several fundamental reasons that natural gas prices have dropped. These include a warmer than normal winter season, an oversupply of natural gas in the U.S. and other factors. This will impact the top and bottom lines of companies that have to produce, let alone sell, into that environment. The chart below shows the trend in natural gas prices as they bottomed in late 2009 and look to be near a new bottom soon. Will this trend repeat itself again?... Read more