Natural Gas Futures Rise to over $4

by Jay Young | Investing, Oil & Gas, Tax Savings, Taxes, The Upside

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Newsletter No. 104

Good afternoon,

It’s Thursday, February 20, 2025, and in this edition of The Upside we’ll cover the latest updates from the oil and gas industry, along with important news from King. As always, I hope to keep you up to date on the trends shaping our industry. Thanks for reading.

This Week's Headlines

Shaping the Future of Energy: A Conversation with Jeff Krimmel on The Jay Young Show
Blog: Trump’s Plan to Reshape USAID Could Open Doors for U.S. Oil & Gas
Natural Gas Prices Rise as Cold Weather Boosts Demand
Texas GulfLink Port Gets Approval for Crude Oil Exports
Oil Prices Rise Due to Supply Worries and Sanctions Uncertainty
Diamondback Energy Buys Double Eagle IV for $4.1B

Ep. 158: AI & Energy Strategy: Jeff Krimmel at NAPE Houston 2025

HAPPENING AT KING

Shaping the Future of Energy: A Conversation with Jeff Krimmel
Catch this episode of The Jay Young Show where Jay and co-host Jordan Soto sit down with Jeff Krimmel, founder of Krimmel Strategy Group, filmed live from NAPE recently. Jeff shares his journey from mechanical engineering to energy strategy, discussing market challenges, AI’s impact, and the value of curiosity and problem-solving. A must-listen for anyone interested in energy or business strategy! Subscribe to us on YouTube or Rumble. You can also listen on Spotify, iTunes or wherever you listen to podcasts.

Blog: Trump’s Plan to Reshape USAID Could Open Doors for U.S. Oil and Gas
The Trump administration’s proposal to reshape USAID could create significant opportunities for U.S. oil and gas companies by shifting foreign aid toward fossil fuel development. This plan focuses on helping developing countries access energy resources, boosting economic growth, and reducing reliance on foreign aid. With a reduced focus on climate programs, USAID could support U.S. energy projects in Africa, Latin America, and parts of Asia, strengthening America's role in global energy markets and promoting energy security. For more details, read the full article on Forbes.com.

Oil & Gas News

Natural Gas Prices Rise as Cold Weather Boosts Demand

Natural gas prices in the U.S. have surged to $4.25 per unit as a cold Arctic blast increases demand for heating. At the same time, there are concerns that extreme weather could disrupt gas production. U.S. gas supplies are tight, with storage levels lower than usual. The country’s dry gas production is at 106.1 billion cubic feet per day (Bcf/d), slightly higher than last year, but still vulnerable to weather disruptions. In Europe, gas prices are also unstable as countries struggle to refill storage before next winter, made worse by cold weather and less wind power.

Texas GulfLink Port Gets Approval for Crude Oil Exports

Sentinel Midstream’s Texas GulfLink crude export terminal has received approval from the U.S. Maritime Administration. The port, located 30 miles off the Texas Gulf Coast, will let ships load oil without waiting in crowded docking areas. The terminal will be able to handle 2 million barrels of crude oil per day and is set to become a major facility for U.S. oil exports. This is the second Gulf Coast project to get approval, with more still waiting.

Oil Prices Rise Due to Supply Worries and Sanctions Uncertainty

Oil prices went up by 1% due to concerns about supply disruptions in Russia and the U.S. A Ukrainian drone attack on Russian oil and freezing temperatures in North Dakota are causing disruptions. The market is also waiting to see if changes in sanctions related to the war in Ukraine will affect oil flows. This environment could benefit oil and gas investors as rising prices and tight supply can lead to higher revenue and profits for oil and gas companies. Additionally, speculation that OPEC+ may delay increasing supply could help keep prices elevated, offering further growth opportunities for investors. You can see the up-to-the-minute commodities numbers here.

Move to Watch

Diamondback Energy Buys Double Eagle IV for $4.1B
Diamondback Energy is buying Permian oil producer Double Eagle IV for $4.1 billion, which includes $3 billion in cash and shares of Diamondback. The deal adds 40,000 acres of land in the Midland Basin, boosting Diamondback’s oil production by 27,000 barrels per day. The acquisition will help Diamondback expand its operations and create efficiencies with its existing assets. The deal is expected to close by April 1.

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Thank you for your continued support, and if you have any questions for myself or any member of the King team, please don't hesitate to reach out to us.

All the best,

Jay