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Did Natural Gas–Weighted Stocks Outperform Natural Gas?


Dec. 4 2020, Updated 10:50 a.m. ET

Natural gas–weighted stocks and natural gas

Between June 13 and June 20, 2016, our equally weighted basket of natural gas–weighted stocks rose 4.6%. This compares to a 6.2% rise in natural gas for the same period. These returns are adjusted for dividends. These stocks operate with a production mix of at least 60% in natural gas (GASL) (BOIL) (UGAZ) (FCG). They’re also part of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).

Below are the returns for the best and worst performing stocks from our basket of natural gas–weighted stocks from June 13 to June 20, 2016:

Natural gas–weighted stocks that outperformed natural gas include:

  • EXCO Resources (XCO) – 17.8%
  • Comstock Resources (CRK) – 10.2%
  • Contango Oil & Gas Company (MCF) – 7.7%

Natural gas-weighted stocks that underperformed natural gas include:

  • WPX Energy (WPX) at -3.8%
  • Rex Energy (REXX) at -3.6%
  • Antero Resources (AR) at -0.35%

In the previous part, we saw how natural gas impacted these stocks. However, the performance of these natural gas–weighted stocks could also be related to their earnings and movements in crude oil (USO) (UCO) prices.

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Natural gas–weighted stocks and natural gas since their 2016 lows

On March 3, 2016, natural gas futures touched a 17-year low of $1.64. From March 3 to June 20, 2016, natural gas rose 67.5%. Our basket of equally weighted upstream stocks rose 44.1% over this same period. Here’s how they performed individually over this period.

Natural gas–weighted stocks that outperformed:

  • Rice Energy – 125.7%
  • Contango Oil & Gas (MCF) – 98.1%
  • Southwestern Energy (SWN) – 89.5%

Natural gas–weighted stocks that underperformed:

  • Rex Energy at -29.8%
  • EXCO Resources at -3.1%

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