Price Forecast:

Bullish Case: Investment in infrastructure and favorable regulatory changes could drive growth for NGG, supported by strategic partnerships and increasing market demand for renewable energy, potentially pushing prices upward beyond $65 by mid-2025.

Bearish Case: Ongoing infrastructure issues combined with elevated regulatory pressures could lead to decreased investor confidence and potential price declines, risking a drop below $50 as customer dissatisfaction grows amid high operational costs.

Potential Outcomes:

• Favorable regulatory shifts leading to infrastructure growth (60%)
• Elevated public dissatisfaction causing downward price pressures (30%)
• Major weather events impacting operational stability (10%)

Trading Oracle: Consider initiating a bullish long call spread using NGG 65 C and 70 C, targeting an expiration in mid-2025 to capitalize on potential price appreciation. This strategy leverages increasing implied volatilities and low historical mean reversions while managing downside risks effectively with a tight spread.

December 20, 2024