Natural Gas ETF Investment Updates -06Jan2014

  • A warm start to winter is disappointing investors who bet U.S. natural gas producers would offer a refuge from falling oil prices, as gas futures settled at a two-year low $2.882/MMBtu yesterday after dropping 32% in 2014.
  • Among the 10 worst performers on the S&P’s Exploration & Production Index since June 20 – when oil was $107.26/bbl and gas was $4.53 – seven are companies that produce more than 50% gas; since June 20, Chesapeake Energy (CHK -1.3%) has declined 37%, Range Resources (RRC -0.7%) has dropped 41%, and Southwestern Energy (SWN -1.6%) has plunged 45%.
  • The natural gas market looks terrible for 2015 and has been structurally oversupplied for years — Raymond James analyst Marshall Adkins says as he cuts his forecast for average 2015 Henry Hub gas prices to $3/Mcf from $3.65, citing normal weather that will “unmask the bearish underpinning of the U.S. gas market.”
  • Natural gas disappoints investors seeking oil refuge – Carl Surran, SA News Editor

If you are an investor in any of the following Natural Gas ETFs/ETNs, you can benefit from our stock price target service, for buying and selling levels in the next 3,6,12 months, along with longer term price targets (if they are visible).

  • RRC Range Resources Corporation
  • SWN Southwestern Energy Co.
  • UNG The United States Natural Gas ETF, LP
  • DGAZ VelocityShares 3x Inverse Natural Gas ETN
  • UGAZ VelocityShares 3x Long Natural Gas ETN
  • BOIL ProShares Ultra Bloomberg Natural Gas ETF
  • FCG First Trust ISE-Revere Natural Gas Index ETF
  • GASL Direxion Daily Natural Gas Related Bullish 3x ETF
  • KOLD ProShares UltraShort Bloomberg Natural Gas ETF
  • UNL The United States 12 Month Natural Gas ETF, LP
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