Memorial Resource Development Corp

The EIA estimates that US natural gas prices could average $3.06 per MMBtu in 2017—1.4% lower than previous estimates.

The EIA reported that US natural gas inventories rose by 46 Bcf (billion cubic feet) to 2,816 Bcf on June 16–23, 2017.

On May 25, the EIA released its weekly natural gas inventory report. US natural gas inventories rose by 75 Bcf to 2,444 Bcf on May 12–19, 2017.

As of May 11, 2017, June natural gas futures are above their 20-day, 50-day, 100-day, and 200-day moving averages.

Weekly US dry natural gas production rose 0.3% to 70 Bcf (billion cubic feet) per day between April 27 and May 3, 2017.

As of April 27, 2017, natural gas prices were 19.1% below their December 2016 high. Prices fell due to warmer-than-normal weather for this time of year.

The EIA reported that US natural gas inventories rose by 54 Bcf to 2,115 Bcf on April 7–14, 2017. Inventories rose 2.6% week-over-week but fell 14.8% YoY.

The EIA reported that US natural gas inventories rose by 10.0 Bcf (billion cubic feet) to 2,061 Bcf between March 31, 2017, and April 7, 2017.

As of April 6, 2017, US natural gas prices are above their 20-day, 50-day, 100-day, and 200-day moving averages. That suggests a bullish momentum for natural gas.

The EIA released its weekly natural gas inventory report on April 6, 2017. US natural gas inventories rose 2.0 Bcf to 2,051 Bcf from March 24–31, 2017.

The latest weather reports suggest that cold weather will persist for a few days in the northern and eastern parts of the US.

The EIA (U.S. Energy Information Administration) estimates that US natural gas prices could average $3.43 per MMBtu in 2017 and $3.70 per MMBtu in 2018.

The EIA estimates that US dry natural gas production could average 73.7 Bcf per day in 2017 and 77.7 Bcf per day in 2018.

US natural gas inventories are at 2,356 Bcf for the week ending February 17, 2017—10% lower than the same period in 2016.

The EIA estimates that US natural gas inventories will be at 1,805 Bcf by the end of March 2017—3.7% higher than the five-year average.

US natural gas inventories are at 2,559 Bcf for the week ending February 3, 2017—11.3% lower than the same period in 2016.

PointLogic reported that US dry natural gas production was flat at 70.4 Bcf (billion cubic feet) per day between January 25, 2017, and February 1, 2017.

Market data provider PointLogic reported that US dry natural gas production rose 0.4% to 70.4 Bcf (billion cubic feet) per day from January 19–25, 2017.

For the week ending January 13, US natural gas inventories were 2.6% lower than the five-year average. They’re also 13% less than the same period in 2016.

The EIA reported that US natural gas inventories fell by 151 Bcf (billion cubic feet) to 3,160 Bcf between December 30, 2016, and January 6, 2017.

US natural gas inventories are 0.6% less than the five-year average. Falling natural gas inventories will support natural gas (FCG) (DGAZ) (BOIL) prices.

Aegent Energy Advisors estimates that US natural gas prices won’t exceed $4.11 per MMBtu (million British thermal units) in January 2017.

US natural gas inventories are 6.9% above their five-year average. They’re also near record levels.

Aegent Energy Advisors estimates that US natural gas prices won’t exceed $2.92 per MMBtu (million British thermal units) in December 2016.

PointLogic reported that US natural gas supplies rose 0.5% to 77.4 Bcf (billion cubic feet) per day from November 10–16, 2016.

Market data provider PointLogic reported that US natural gas supplies rose 0.1% to 77.1 Bcf (billion cubic feet) per day from November 3–9, 2016.

US natural gas inventories are 4.6% above their five-year average. However, the surplus is shrinking.

The EIA released its monthly STEO report on October 13. It expects US natural gas prices to average $2.51 per MMBtu in 2016 and $3.07 per MMBtu in 2017.

World Bank forecast that US natural gas prices will average $2.30 per MMBtu in 2016, $3.00 per MMBtu in 2017, and $3.50 per MMBtu in 2018.

November natural gas futures contracts rose 0.3% and closed at $3.05 per MMBtu on October 6, 2016. Prices rose despite the warmer-than-normal weather.

PointLogic reported that US natural gas supplies were flat at 77.7 Bcf per day from September 22–28, 2016—1.4% less compared to the same period in 2015.

Aegent Energy Advisors estimates that US natural gas prices are expected to trade below $3.27 per MMBtu this winter from November 2016 to March 2017.

On September 16, 2016, Cobalt International Energy (CIE) had the highest implied volatility among the upstream stocks that are part of XOP.

Open interest rose by 50,242 contracts between July 26 and August 2. It hit the lowest level of 984,024 since February 2016 in the week ending July 26.

Between May 2 and August 10, the US Dollar Index and natural gas prices moved in opposite directions based on the closing price in 35 out of 70 trading sessions.

In the last five trading sessions, natural gas futures have fallen by 9.8%. They closed at ~$2.56 per MMBtu on August 10—down ~2.1% compared to the previous session.

Currently, ~49% of Wall Street analysts rate EOG Resources (EOG) as a “buy” and ~49% of analysts rate it as a “hold.”

Currently, ~69% of Wall Street analysts rate Devon Energy (DVN) as a “buy” and ~28% of analysts rate it as a “hold.”

Natural gas futures contracts for August delivery rose by 1.5% and settled at $2.69 per MMBtu on July 21. Prices rose due to the hot summer weather forecast.

US natural gas inventories are 22.1% higher than their five-year average. High natural gas inventories could pressure natural gas prices.

Market intelligence company PointLogic reported that US natural gas consumption rose by 4.4% for the week ended July 13, 2016. compared with the previous week.

August natural gas futures contracts fell by 0.37% and closed at $2.72 per MMBtu on Thursday, July 14. Prices fell due to the larger-than-expected rise in natural gas inventories.

Between July 6 and July 13, 2016, natural gas (UNG) (DGAZ) (BOIL) (GASL) (GASX) (DGAZ) (FCG) futures fell by ~1.8%, and the US Dollar Index (UUP) rose by ~0.17%.

PointLogic reported that US natural gas consumption fell by 3.7% between June 30, 2016, and July 6, 2016. This was the first fall in the last five weeks.

Net long positions rose by 21,586 contracts to 213,075 contracts for the week ended June 21, 2016, compared to the previous week.

The EIA forecast that the US natural gas supply and demand gap will be 4.1 Bcf per day in 2016 and 4.4 Bcf per day in 2017.

Denbury Resources reported profits of ~$72 million on crude oil (USO) derivative settlements in 1Q16. Its hedging effectiveness was ~38%.

In its June STEO report, the EIA forecast that US natural gas prices will average $2.29 per MMBtu in 2016 and $3.05 per MMBtu in 2017.

The EIA (U.S. Energy Information Administration) forecasts that US natural gas production could average ~79.6 Bcf per day and ~81.3 Bcf per day in 2016 and 2017, respectively.

This transaction is a classic merger arb core position. The companies are reasonably big and liquid and the deal makes strategic sense. It’s fairly safe.

Range Resources’ (RRC) offer of $15.75 per share was a 17% premium to Memorial Resource Development’s (MRD) price before the deal was announced.

Range Resources is growing its portfolio in the Southeast US. Natural gas exports seem to be a promising growth area. The deal will enhance its credit profile.

According to Range Resources’ presentation on its merger with Memorial Resource Development, it’s expecting an ~108% boost to its 2016 estimated cash flow.

On May 16, 2016, natural gas producers Range Resources (RRC) and Memorial Resource Development (MRD) announced a definitive merger agreement.

The EIA forecasts that US natural gas production could average ~79.6 Bcf (billion cubic feet) per day and ~81.3 Bcf per day in 2016 and 2017, respectively.

For 1Q16, Memorial Resource Development (MRD) reported total production of 420 million cubic feet equivalent per day, a rise of ~52% compared to 1Q15.

WPX Energy (WPX) announced its 1Q16 earnings on May 4, 2016, after the Market closed. WPX reported an adjusted loss of $0.21 per share, which was $0.02 lower than analysts’ consensus.

Currently, ~79% of Wall Street analysts rate Murphy Oil (MUR) as a “hold” and ~21% of analysts rate it as a “sell.” There is no “buy” rating on the stock.

Murphy Oil (MUR) is set to report its 1Q16 earnings on May 4, 2016, after the market closes. For 1Q16, Wall Street analysts expect Murphy Oil to report an adjusted loss of $0.68 per share, compared with its 1Q15 loss of $1.11 per share.

Currently, ~48% of Wall Street analysts rate Occidental Petroleum (OXY) as a “buy” and ~41% of analysts rate it as a “hold.”

Pioneer Natural Resources (PXD) announced its 1Q16 earnings on April 25, 2016, after the market close.

Tudor, Pickering, Holt & Co. assigned Southwestern Energy (SWN) the highest target price of $18, which is ~69% higher than the closing price of $10.67 on April 21.

In 4Q15, Memorial Resource Development exchanged its existing 2018 crude oil (USO) (SCO) and natural gas (UNG) (UGAZ) (DGAZ) hedges.

In its March Short-Term Energy Outlook report, the EIA forecast that the US natural gas supply-demand balance could average around 2.9 Bcf per day in 2016.

In its March report, the EIA stated that the US natural gas supply-demand gap could average 2.89 Bcf per day in 2016 and rise to 4.05 Bcf per day in 2017.

US natural gas prices have fallen for the third time in the last five trading sessions. Prices are following the long-term bearish trend and trading close to 16-year lows.

The EIA, in its November Short-Term Energy Outlook, reported that natural gas inventories for the week ending October 30 reached 3,929 billion cubic feet.

The US government’s global forecast model estimates that the weather will likely be colder than normal in November. Cold weather impacts the heating needs.

The EIA published its natural gas stocks report on November 5. Natural gas stocks rose by 52 Bcf to 3,929 Bcf for the week ending October 30, 2015.

The current natural gas stocks are 11.8% more than the level of 3,468 Bcf in 2014. They’re also 4.1% greater than the five-year seasonal average of 3,724 Bcf.

The natural gas inventory rose to 3,877 Bcf for the 30th consecutive week in the week ending October 23, 2015.

US households use 49% of the natural gas for heating needs. The lower cost of natural gas and clean energy will drive the demand for natural gas.

Warm weather was the catalyst that killed the natural gas market in October. Prices fell 8% in October due to warmer-than-normal winter weather estimates.

According to the EIA, US natural gas stocks rose by 63 billion cubic feet to 3,877 Bcf for the week ended October 23, 2015.

Government data showed natural gas inventories rose by 81 Bcf (billion cubic feet) to 3,814 Bcf for the week ended October 16, 2015.

For the week ending October 24, 2014, natural gas stocks rose by 87 Bcf. Mild winter weather and record production could push natural gas inventory higher.

According to the EIA, natural gas inventory rose 81 Bcf to 3,814 Bcf for the week ended October 16, 2015. It rose due to increasing natural gas production and a mild winter forecast.

The EIA released its weekly natural gas stockpile report on October 8. Natural gas stockpile rose 95 Bcf in the week ended October 2. Natural gas inventory rose 98 Bcf in the week ended September 25.

Natural gas inventories rose by 98 Bcf (billion cubic feet) to 3,538 Bcf in the week ending September 25, which was the 26th straight week of increases.

August natural gas futures contracts trading on the NYMEX resumed their rally on Thursday, July 15, 2015.

Bloomberg estimates show that inventories will rise by 110 Bcf for the week ending May 22, 2015. This will put pressure on natural gas prices.

The demand for natural gas increased from electric power plants. Gas deliveries to power plants increased to 26.5 Bcf—compared to 23.4 Bcf last year.

The EIA published the weekly natural gas report on May 7. Weekly natural gas inventories increased by 76 Bcf to 1,786 Bcf from 1,710 Bcf for the week ending May 1.

NYMEX-traded June natural gas futures declined by 1.51%—led by a massive increase in inventory data. Gas prices fell for the third day in a row.

Mild weather estimates are driving natural gas prices this week. These estimates could also drive gas prices next week.

Natural gas futures for June delivery dropped marginally by 0.14%—led by the consensus of an increasing stockpile. Prices dropped for the second day.

The EIA will publish the natural gas report tomorrow. The weekly gas in storage rose by 81 Bcf to 1,710 Bcf from 1,629 Bcf for the week ending April 24.

Last week, the EIA published the weekly natural gas storage report on April 30, 2015. The weekly natural gas in storage increased by 81 Bcf.