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The Associated Press

Globe editors have posted this research report with permission of  Dundee Capital Markets. This should not be construed as an endorsement of the report's recommendations. For more on The Globe's disclaimers please read here. The following is excerpted from the report:

Our view on natural gas in Western Canada is generally that we do not believe AECO price will rise above $4.00/GJ in the near or medium term for a sustained period. The price is constrained by the ease of increasing natural gas supply in North America and conversion of power generation demand from gas to coal if pricing dictates. A breakout likely won't occur until LNG exports provide a supply relief valve in approximately 2019-2020.

Our top recommendations for exposure to stronger AECO prices are Paramount Resources, Cequence Energy and Bellatrix Exploration. Cash flows in 2014E will change by 12 per cent, 11 per cent, and 8 per cent respectively for each $0.50/share movement in natural gas price.

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