- 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
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- RRC Range Resources Corporation
- SWN Southwestern Energy Co.
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- 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