1-800-PetMeds

Tuesday, September 15, 2009

Energy Industry Icon Calls for Lower U.S. Natural Gas Prices; Industry at Record Storage Levels and No Demand Drivers

/PRNewswire/ -- Karl W. Miller, a senior energy executive and institutional investor, today issued the following statement through his advisor VBCC, regarding the fact that U.S. natural gas is at record storage levels and overpriced.

Mr. Miller re-affirms expectations for natural gas to correct to the $2.50 to $2.75 mmbtu price range and will continue getting cheaper, as there will be no sustainable drivers either by natural gas fired electricity generation or industrial demand in the U.S. for the next 6-8 quarters.

The natural gas pipeline companies, master limited partnerships (MLP's) and natural gas producers will suffer substantially reduced earnings during the next 6-8 quarters and are substantially overvalued at the current time.

Oil is dollar based, but has no linkage to the price or demand of natural gas in the U.S.

Mr. Miller retains a sell recommendation on U.S. publicly listed renewable energy companies. He predicts we will see many of these companies, which are reliant upon massive government subsidies, state approval of pass through price increases, and highly levered fail and/or will be purchased at distressed prices.

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