On its conference call today, natural gas producer Chesapeake Energy (CHK) was pretty bullish on the outlook for natural gas (UNG).
They’re expanding production and will continue to do so for years, and believe that gas production will come down “in the months and quarters ahead”, starting in the fourth quarter of 2009, and extending into an “absolute trough of production some time in the first half of 2011.”
Given this outlook, they aren’t too concerned with hedging natural gas right now, since they don’t want to cap their upside. They’re also staying the course with their aggressive drilling programs and expect to grow their reserves for years to come. Of course it easier than most to be bullish when you’re one of the lowest cost producers in North America.
We’ve pasted a key slide from their new presentation and a link to the audio from the conference call, below.