Natural gas prices throughout 2014 are up significantly from last year, with 1Q14 prices averaging $4.72 per MMBtu compared to the 2013 average price of $3.73 per MMBtu.
Natural gas liquids prices slipped slightly downward last week, but remain up ~15% from June of last year.
The latest natural gas inventory report buoyed natural gas prices.
Natural gas prices traded down on expectations of mild weather and closed at $4.41 per MMBtu for the week ended May 19, 2014—down from the $4.53 per MMBtu close the prior week.
Natural gas inventories can have a big influence on natural gas prices.
Many parties in the energy industry and investing community monitor oil and gas rig counts as one measure of drilling activity.
WTI crude prices increased last week.
Crude oil prices moved up on bullish inventory figures. Crude oil inventories decreased by 947 thousand barrels, compared to analysts’ expectation of a 36 thousand barrel increase.
The spread between WTI and Brent crude held at ~$8 per barrel, closing at $7.99 per barrel on May 16, compared to the spread of $7.93 per barrel for the week ended May 9, 2014.
Crude oil and refined products inventories can move crude oil prices. A more-than-expected increase in crude inventories implies either greater supply or weaker demand and is bearish for crude oil prices.
Range Resources Corporation (RRC) is an oil and natural gas producer, primarily engaged in the exploration and development of natural gas.
The 400-year-old Marcellus Shale formation is estimated to contain more than 410 trillion cubic feet of natural gas and could supply U.S. consumers’ energy needs for hundreds of years.
One reason why the earnings were down were the crude oil prices—they were lower than the prior quarter causing lower crude realizations.
Chevron is anticipating 20% production growth, by 2017 which implies a production increase of 3.1 million barrels of oil-equivalent.
Chevron reported $2.36 earnings per share (or EPS) for Q1 2014, down from previous year’s $3.18 by ~26%, missing the $2.51 consensus estimate by $0.15.
In August 2013, shareholders approved an option grant for Triangle’s CEO, Jon Samuels, allowing him to purchase 6 million shares.
Natural gas liquids prices fell slightly over the week, driven by propane, butane, and iso-butane.
Chevron Corporation is currently trading at EV-to-2014E EBITDA of 5x, has an approximately $239 billion market cap, and ~$245 billion enterprise value.
The four pure-play Bakken E&P companies, including EOX, KOG, NOG, and OAS, currently trade for 5.8x 2014E EBITDA compared to their three-year average of ~6.5x.
Natural gas prices fell on a bearish inventory report, closing at $4.53 per MMBtu for the week ended May 9, 2014—down from the $4.67 per MMBtu close the prior week.