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Editors Comment
February 6, 2008
Rockies Express to Have Minimal Impact on Upstream Stocks
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Although highly touted, Rockies Express (Rex)—the new pipeline that will carry 1.5 billion cubic feet per day of gas from the Rockies to the Midcontinent and by mid-2009 to markets in the Northeast—is not likely to have a major impact on the overall domestic gas market or on E&P stocks.


“Changes to basis differentials are not likely to significantly alter 2008 cash flows or fundamental NAV (net asset value) valuations for [Rockies] producers,” contends Brian Kuzma, an analyst with JPMorgan Securities in Houston.

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-- Brian A. Toal

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