Our experience with Steve Yuzpe has been an extremely favorable one and we have confidence in his abilities to lead the company going forward.
While Sprott’s share price has been bottoming out due to the dividend cut, Long Run Exploration (LRE.TO), Sprott’s largest holding, has seen its share price increase over 30%.
SRC passes our 3-M’s test (management, moat, and mis-pricing). Our analysis tells us that the company is worth north of CAD$3.50 based on its NAV.
NGL prices closed slightly lower at $39.30 per barrel on April 25, compared to $39.84 per barrel for the week ended April 17.
Natural gas prices closed at $4.65 per MMBtu for the week ended April 25, 2014—2% lower than the $4.74 per MMBtu close the prior week.
On April 25, the price of the WTI crude front month contract closed at $100.60 per barrel, 3% lower than the $104.30 per barrel close the week prior.
The spread between WTI and Brent crudes closed at $8.89 per barrel on April 25, compared to the spread of $6.07 per barrel for the week ended April 11, 2014.
The composite NGL prices traded slightly higher on the week.
Natural gas prices closed at $4.74 per MMBtu for the week ended April 17, 2014—4% higher than the $4.62 per MMBtu close we saw the prior Friday.
Since April 18 was Good Friday and NYMEX closed on that day, the energy prices of the week will be the closing prices on Thursday, April 17.
The spread between WTI and Brent crudes closed at $6.07 per barrel on April 17, compared to the spread of $3.80 per barrel for the week ended April 11, 2014.
Last week’s narrowing in the WTI-Brent spread might have been partly due to the rise in WTI crude oil prices on positive U.S. economic indicators and a drop in U.S. gasoline inventories.
This week saw NGL prices trade higher—a positive short-term indicator. Besides, despite falling from highs reached in February, NGL prices remain up significantly since late June 2013.
Natural gas prices closed at $4.62 per MMBtu for the week ended April 11, 2014, 4% higher than the $4.44 per MMBtu close the prior Friday.
WTI crude oil traded higher on the week, with support coming from geopolitical tensions in Russia, Ukraine, and Libya as well as low gasoline inventories.
Rising natural gas prices may reverse coal-to-gas switching. As demand for coal increases, coal inventories would fall, driving prices up, which is a positive for coal producers.
According to the EIA, the demand for natural gas will increase gradually in the coming years as it continues to replace coal to generate electricity in the U.S.
Most electricity is generated from fossil fuels, such as coal, natural gas, and oil. Coal and natural gas are the primary sources of energy used for this purpose.
The spread between WTI and Brent crudes closed at $5.59 per barrel on April 4, compared to the spread of $6.34 per barrel for the week ended March 28, 2014.
NGL prices traded slightly lower this week and remain down over 20% since early February. Natural gas liquids prices still remain up roughly 20% since lows in June, though.