The President may not be a supporter of natural gas, but in Cramerica natural gas is the best option out there for a transition fuel. Natural gas will lower carbon emissions, break our addiction to oil and potentially create hundreds of thousands of jobs here in the United States, especially when you consider the long-term strength of the natural gas producers.
Take EQT, which just reported a surprise upside on Thursday. The stock is up 6.6% since the last time Cramer spoke with EQT’s Chairman and CEO on Sept. 23 when it was trading at $42.09. But the stock is up 55% over the last 5 years while the S&P is down 8%; it's up 419% over the last 10 years versus 23% down for the S&P 500. Also, it's up 522% over the last 15 years versus a 132% gain for the S&P 500, and up 610% over the last 20 years while the S&P was up 231% over the same period.
EQT is one of the lowest cost producers out there, with total production costs of $2.30 per thousand feet and average finding and development costs of just $1.14 per thousand feet over the last three years. The only other natural gas company, Cramer said, that is comparable is Ultra Petroleum. EQT is also growing its production, up 19.5% year over year for the fourth quarter, and the company sees 20% production growth for 2010. Cramer told viewers that much of the growth here comes from Marcellus Shale in Appalachia, where EQT is drilling and plans to add forty to fifty new wells in 2010. The company expects production in Marcellus to double for the year. EQT’s, thanks to this shale, proved reserves hit 4.1 trillion cubic feet at the end of 2009, up 31%, and the company also has a total of 26 trillion cubic feet of potential resources.
So, how does EQT do it? Cramer talked with EQT’s Chairman and CEO, Murray Gerber, to find out more about the future of natural gas and his “great” company. Watch the video for the full interview.
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