The natural gas rig count

The natural gas rig count rose by four to 187 in the week ended September 8, 2017. On a YoY (year-over-year) basis, the natural gas rig count more than doubled that week, though natural gas (BOIL) futures have only risen 5.1% during this time period.

Behind the Natural Gas Rig Count: Will Production Rise?

The oil rig count

Between 2008 to date, natural gas supplies rose significantly. However, during this period, the natural gas rig count fell 88.6% from its record level in 2008.

The rise in the oil rig count could be responsible for the rise in natural gas supplies because often, natural gas is found during oil extraction.

Last week, the US oil rig count fell by three to 756. Moreover, the US oil rig count has shown a possible trend of sustained declines, which could cheer natural gas bulls.

However, there could be a 25% increase in new-well gas production per rig in September 2017, compared with the same period in the previous year, according to the EIA (US Energy Information Administration). Higher supplies could be a bearish catalyst for natural gas prices.

Based on their correlations with natural gas futures, US natural gas producers (XLE) (IEO) such as Southwestern Energy (SWN) and Gulfport Energy (GPOR) could be impacted by natural gas prices in the short term. Natural gas prices are important for these companies’ profitability in the long term.

Latest articles

This year, Pfizer (PFE) stock has fallen 0.34% and Bristol-Myers Squibb (BMY) stock has fallen 6.48%. Both companies are focused on strengthening their position in the high-growth oncology and immunology markets. Let's take a closer look at each.

Walt Disney’s (DIS) latest movie, Toy Story 4, has reportedly broken records in the opening weekend with $118 million in sales. However, the opening weekend collection was behind analysts’ expectations of at least $150 million in the first weekend.

24 Jun

Will Home Depot’s Upward Momentum to Continue?

WRITTEN BY Rajiv Nanjapla

As of June 21, Home Depot (HD) was trading at $209.39, which implies a rise of 9.7% since the announcement of its first-quarter earnings on May 21. Also, the company was trading at a premium of 32.4% from its 52-week low of $158.09 and a discount of 2.8% from its 52-week high of $215.43.

On June 21, Aurora Cannabis (ACB) made an announcement that indicated that it will move towards higher margin vape products. In addition, the company also believes concentrates and edibles will command higher margins. In anticipation of this development, the company announced the expansion of its facility to capitalize on growth related to these segments.

Shares of Mondelēz International (MDLZ) are scaling new heights thanks to its stellar gains so far this year. Mondelēz stock is up 38.0% on a YTD (year-to-date) basis, and it closed at $55.25—just a shade lower than its 52-week high of $55.71—on June 21.

24 Jun

How Long Will Facebook's Libra Fuel Bitcoin Rally?

WRITTEN BY Mayur Sontakke, CFA, FRM

Ever since the news about Facebook’s (FB) cryptocurrency project broke, Bitcoin has rallied on the hope that Facebook’s entry in the space will help make cryptocurrencies mainstream. Facebook’s cryptocurrency will be called Libra and will be governed by an association with 28 founding members across industries.

172.31.59.107