Are you anticipating significant price movement in natural gas?
“I would agree with Eric,” says Papa. “The other factors that come in (to play) are production declines in Canada ... and flat production in the United States. If we have a warmer than average summer and a more active hurricane season, all the elements are there – we may see gas prices approaching $10.”
Is natural gas more or less sensitive to the weather than crude oil?
“It’s more sensitive than crude oil on both the upside and downside.” replies Papa.
You’ve had a very prosperous few years – are you confident going forward?
"Regarding EOG and the likelihood of further advances in our equity value, I’m just as confident that the next 3 years are going to look very similar to the past 3 years as far as equity appreciation."
“The external macro environment looks bullish and internal growth prospects look strong."
How depended are you on commodity price for future performance?
“There’s a strong link between commodity price and equity values of all North American gas companies.. and we have strong internal growth.”
How likely is it that we will increase storage for natural gas?
“There’s a little bit of additional storage.. full storage last year was 3.5 trillion cubic feet, that’s going to grow to 3.6 or 3.7 this year.”
Dylan asks the guys of they’d rather be long a company like EOG or the commodity?
Eric Bolling says own the companies because the price of natural gas as a commodity is quite volatile.
Guy Adami, Pete Najarian and Jeff Macke all echo Eric’s advice. They, too, prefer the equity.
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Trader disclosure: On May 22, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (SWY); Najarian Owns (MDT), (STI); Bollings Owns Coffee, Sugar, Gold, Silver, March Natural Gas Futures, Is Short April Natural Gas Futures