This weeks EIA natural gas storage report shows that there's 2888 billion cubic feet in storage. Natural gas is seasonal. In a normal year, it peaks around 3000 bcf about Halloween and then bottoms out at 1200 in late March. Anything over 3500, they're wondering where to put it. So, with winter winding down, we have enough in storage to start a whole new winter.
You can see that this is a problem. Everybody went crazy into fracking at the same time a few years ago, and due to the long lead time, they're all going into full production at the same time, so that now the stuff is absurdly cheap. Gas at $2.50/ 1000 cubic feet is energetically equivalent to oil at $15/ barrel. Oil is trading at $115/ barrel. So, some companies are going under, and then, the price will shoot back up. That's capitalism!
Once the gas is gone, what do we have?
Yep. Sunshine. Meanwhile, how are gas companies getting by? Producing at $5 and selling at $2.50 is not easy. First, strip out every bit of longer hydrocarabons & sell it. When petroleum engineering fails, go to financial: Capitalize everything, then every 3 or 4 years, write off a billion. This makes it look like they're profitable in general, but have the occasional bad year.
Until the writedown leaves them insolvent & the next bond won't sell. If you're ready for the serious version, AE Berman at TheOilDrum
(Edited because the first video bored me & the wrap needed clarity)