Natural gas–weighted stocks’ returns

On May 15–22, our list of natural gas–weighted stocks fell 10%, while natural gas April futures fell 2.2%. On average, natural gas–weighted stocks underperformed natural gas futures during this period.

Cabot Oil & Gas Is Rising despite Weakness in the Energy Market

Why is Cabot Oil & Gas rising?

The following natural gas–weighted stocks were the outperformers in the trailing week:

  • Cabot Oil & Gas (COG) rose 2.2%.
  • Southwestern Energy (SWN) fell 8%.
  • Gulfport Energy (GPOR) fell 9.2%.

During this period, Cabot Oil & Gas had a negative correlation with energy commodities and the S&P 500 Index (SPY), which might explain its outperformance. In the trailing week, US crude oil prices fell 1.3%, while the S&P 500 Index rose 0.2%. Trade war tensions are the main reason behind the weakness in the broader market.

Cabot Oil & Gas’s EPS was $0.73 in the first quarter—12.3% above analysts’ consensus estimates. Cabot Oil & Gas’s realized natural gas sale prices were $3.35 per thousand cubic feet including hedges—7.7% higher on a sequential basis despite a 23.1% decline Henry Hub natural gas active futures.

These natural gas–weighted stocks are part of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). They operate with production mixes of at least 60.0% in natural gas.

Cabot Oil & Gas since natural gas’s 17-year low

Between March 3, 2016, and May 22, 2019, natural gas active futures rose 55.2% from a 17-year low. Our list of natural gas–weighted stocks fell 48.8% during the same period.

Cabot Oil & Gas (COG) has risen 23.1% since March 3, 2016. Cabot Oil & Gas was the only gainer on our list of natural gas–weighted stocks during that period. Let’s take a look at the natural gas–weighted stocks that fell the most during this period:

  • Antero Resources (AR) fell 71.1%.
  • Range Resources (RRC) fell 73.4%.
  • Gulfport Energy fell 74.1%.

Latest articles

Apple stock fell 4.6% as the US-China trade war intensified today. China warned of tariffs on more US goods, followed by Trump's tweeted response.

In response to new tariffs from China and President Trump's tweets, the market tanked to session lows on Friday. The DJIA nosedived more than 600 points.

Coverage on Cresco Labs has increased from seven analysts in July to nine in August. Six analysts favor a “strong buy,” and three recommend a “buy.”

AMD stock hit a new 13-year high after the EPYC Rome server CPU launched. How can AMD outperform Intel CPUs at such low prices and still profit?

VMware (VMW) lost about 9% in early hours trading today. VMW released its Q2 of fiscal 2020 results on August 22 after the market closed.

Since Netflix posted its Q2 results, its stock has fallen 18%. Could the streaming giant lose its disruptor position as new players enter the market?