Natural Gas Prices Are Range Bound in the Short Term
The warm weather forecast and slowing natural gas production consensus could support natural gas prices. Resistance is seen at $3 per MMBtu.
On Thursday, July 30, 2015, the EIA published that natural gas inventories rose by 52 Bcf (billion cubic feet) to 2,880 Bcf for the week ending July 24, 2015.
NYMEX-traded September natural gas futures contracts rose by 1.18% on August 3, 2015. Natural gas prices rose due to warm weather estimates.
Martin Midstream Partners (MMLP) was the worst performer among midstream MLPs at the end of trading on Monday, August 3. It fell 6.59%.
Even after being one of the better-managed companies among American coal producers (KOL), Cloud Peak Energy (CLD) has seen its stock price dwindle amid the industry’s chaos.
While its sales came in lower than analyst estimates, Cloud Peak Energy (CLD) beat analyst estimates on the adjusted net losses front in 2Q15.
Low leverage is what separates Cloud Peak Energy (CLD) from larger peers (KOL), including Peabody Energy (BTU), Alpha Natural Resources (ANRZ), and Arch Coal (ACI).
Cloud Peak Energy (CLD) reported adjusted earnings before interest, tax, depreciation, and amortization (or EBITDA) of $50.1 million in 1H15 compared to $84.6 million in 1H14.
Cloud Peak Energy (CLD) reported adjusted earnings before interest, tax, depreciation, and amortization (or EBITDA) of $10.6 million in 2Q15 compared to $45.2 million in 2Q14.
Cloud Peak Energy’s (CLD) 1H15 costs came in at $10.34 per ton compared to $10.56 in 1H14.
After exhibiting stellar cost performance in 1Q15 Cloud Peak Energy (CLD) reported a considerable uptick in its cost per ton in 2Q15.
Cloud Peak Energy shipped 35.7 million tons coal during the first half of 2015 against 41.0 million tons during the same period in 2014.
Cloud Peak Energy (CLD) shipped 16.0 million tons of coal from its three owned and operated mines in the Powder River Basin (or PRB) in 2Q15.
Nearly all upstream MLP stocks fell in yesterday’s trade. Upstream companies’ earnings are significantly tied to crude oil and natural gas prices.
Shell Midstream Partners (SHLX) was the best performer among the midstream MLPs at the end of trading on Monday, August 3. It rose 2.47%.
Long-term oversupply concerns and bearish sentiments could drag US crude oil prices lower. The nearest support for crude oil prices is seen at $44 per barrel.
OPEC plays a vital role in the global crude oil market. OPEC’s member nations operate as a cartel. They control 40% of the global crude oil production.
The API will release the weekly crude oil stockpile report on August 4. The US commercial crude oil stockpile fell by 1.9 MMbbls for the week ending July 24, 2015.
On August 3, crude oil prices fell due to panic selling and growing concerns over the Chinese economic slowdown in the oversupplied crude oil market.
At a broader level, ~71.43% of analysts surveyed rate ETP a “buy” and the remaining ~28.57% rate it a “hold.” The MLP has no “sell” recommendations.
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