Are Natural-Gas-Weighted Stocks Underperforming Natural Gas Prices?




Between February 14 and February 21, 2018, our list of natural-gas-weighted stocks fell 2%. Over this period, natural gas April futures rose 1.9%. The natural-gas-weighted stocks from the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) that outperformed in the trailing week were:

  • EQT (EQT) at 2.7%
  • Antero Resources (AR) at 0.3%
  • Gulfport Energy (GPOR) at -1.3%

The natural-gas-weighted stocks from XOP with the largest fall in the trailing week were:

  • Cabot Oil & Gas (COG) at -3.1%
  • Southwestern Energy (SWN) at -4.6%
  • Chesapeake Energy (CHK) at -6.1%

All these natural-gas-weighted stocks operate with at least 60% production mixes in natural gas.

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Since March 2016

Between March 3, 2016, and February 21, 2018, natural gas active futures were 62.2% up from their 17-year low. Natural-gas-weighted stocks from XOP fell 11.1% in this period.

The natural-gas-weighted stocks that outperformed in this period were:

  • WPX Energy (WPX) at 159.9%
  • Cabot Oil & Gas (COG) at 6.1%

The natural-gas-weighted stocks that underperformed in this period were:

  • Southwestern Energy at -52.3%
  • Range Resources (RRC) at -57.7%
  • Gulfport Energy at -66.7%

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