Natgas Fundamentals ‘Strong,’ 2014 Price Deck Raised to $5: FBR   

                                          Arie Shapira

     May 23 (Bloomberg) -- Natgas fundamentals “remain
strong,” rallies in gas-exposed E&Ps unlikely to be short-lived
as year progresses, FBR analyst Rehan Rashid writes in note.
  * Natgas market undersupplied by ~2bcf/d this year and 2014,
    4.5bcf/d in 2015, 9bcf/d in 2017

  * 2014 price deck raised to $5/mcf from $4.50; maintains L-T
    target $4.50

  * Recommends CRK, DVN; positive on NFX turnaround; sees PXD,
    NBL as core portfolio holdings

  * NOTE: Natgas down 0.2% today to $4.18; storage data hits
    10:30am, est. build +92bcf

  * NOTE: Piper Jaffray technical market strategist Craig
    Johnson earlier said natgas futures have reversed 2-yr
    downtrend over past several weeks and may top $5 in 3Q