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Which Gas-Weighted Stocks Are Outperforming Their Peers?

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Nov. 20 2020, Updated 3:50 p.m. ET

Returns

On October 16–23, 2017, natural gas–weighted stocks collectively fell 3.2%—compared to a 1.5% rise in natural gas futures. However, the natural gas–weighted stocks that rose the most, or fell the least, during this period are:

  • Rice Energy (RICE) at 2.8%
  • EQT Corp (EQT) at 0.7%
  • Cabot Oil & Gas (COG) at -1.8%

The natural gas–weighted stocks that fell the most in the seven calendar days to October 23, 2017:

  • Range Resources (RRC) at -5.4%
  • Chesapeake Energy (CHK) at -5.5%
  • Southwestern Energy (SWN) at -7.9%

Apart from the correlation with natural gas prices, broader market movements could also be crucial for these natural gas–weighted stocks.

All of these natural gas–weighted stocks are garnered from the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). The natural gas–weighted stocks’ classifications also depend on their production mix of at least 60% in natural gas.

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Since 2016

On March 3, 2016, the natural gas active futures were at a 17-year low closing price. Between March 3, 2016, and October 23, 2017, natural gas futures recovered 82.5%. However, ETFs that are meant to track natural gas futures like the ProShares Ultra Bloomberg Natural Gas (BOIL) fell 4.6%, while the United States Natural Gas Fund LP (UNG) rose 11.2% between these two dates.

Compared to the ETFs, natural gas–weighted stocks rose 16.6% between these two dates. The natural gas–weighted stocks that outperformed between March 3, 2016, and October 23, 2017, are:

  • Rice Energy at 182%
  • WPX Energy (WPX) at 98.8%
  • Cabot Oil & Gas at 14.7%

The natural gas–weighted stocks that underperformed between March 3, 2016, and October 23, 2017, are:

  • Southwestern Energy at -30%
  • Range Resources at -39.7%
  • Gulfport Energy (GPOR) at -46.3%

Visit Market Realist’s Energy and Power page for key energy updates.

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