X
<

Why Rise in Oil Could Be Necessary for Energy Stock Momentum

PART:
1 2 3 4 5
Part 5
Why Rise in Oil Could Be Necessary for Energy Stock Momentum PART 5 OF 5

These Natural-Gas-Weighted Stocks Are Ignoring Crude and Natural Gas

Natural-gas-weighted stocks

Between September 25 and October 2, 2017, our list of natural gas-weighted stocks rose 1.3% compared to a 2.4% fall in natural gas (FCG) (BOIL) November futures. Natural gas-weighted stocks that outperformed their peers over this time period are:

  • Range Resources (RRC) at 6.2%
  • Southwestern Energy (SWN) at 2.3%
  • Gulfport Energy (GPOR) at 2%

These Natural-Gas-Weighted Stocks Are Ignoring Crude and Natural Gas

Interested in AR? Don't miss the next report.

Receive e-mail alerts for new research on AR

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

In fact, RRC had the second smallest correlation with natural gas as well as US crude oil prices among the natural-gas-weighted stocks in the past five trading sessions. US crude oil futures fell 3.1% during this time period.

Natural-gas-weighted stocks that fell the most in the trailing week were:

  • Cabot Oil & Gas (COG) fell 0.1%.
  • Chesapeake Energy (CHK) fell 0.5%.
  • WPX Energy (WPX) fell 1.5%.

These three natural-gas-weighted stocks had correlations of above 87% with US crude oil active futures in the past five trading sessions.

These natural-gas-weighted stocks operate with a minimum 60% production mix in natural gas. These stocks are from the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).

Returns since March 3, 2016

Between March 3, 2016, and October 2, 2017, our list of natural gas-weighted stocks rose 26.4%. US natural gas active futures recovered 77.9% from theirĀ 17-year low over this time period. However, natural gas ETFs that track natural gas futures such as the United States Natural Gas Fund LP ETF (UNG) rose 10.2% over this time period. This underperformance could be because of the negative roll yield.

Natural-gas-weighted stocks that rose the most during this time period are:

  • Rice Energy (RICE) at 191.5%
  • WPX Energy (WPX) at 118.2%
  • Cabot Oil & Gas (COG) at 21.7%

Natural-gas-weighted stocks that underperformed between these two dates are:

  • Antero Resources (AR) at -14.9%
  • Range Resources (RRC) at -33.2%
  • Gulfport Energy at -42.2%

Track our Energy and Power page for important energy updates.

X

Please select a profession that best describes you: