Natural gas sales accounted for 14% of total revenue among 54 publicly traded crude oil-producing firms in the first quarter of 2021. Since at least 2018, this percentage has been the highest among these oil-producing enterprises. Natural gas revenue as a percentage of total revenue declined to 10% in the second quarter of 2021, although it is expected to remain reasonably high as natural gas prices continue to rise.
Some traders are wagering that the largest surge in US natural gas futures since the turn of the century would send prices soaring to an unheard-of $40 per million British thermal units. On Monday and Tuesday, two contracts for March $40 European-style call options traded, with one contract selling for as high as 10.5 cents. Only if Henry Hub futures on the New York Mercantile Exchange soared by more than seven times the current March futures price by the time the option expires on Feb. 23 would that $1,050 investment pay off.
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