The natural gas–weighted stocks with the least positive or most negative correlations with US crude oil futures in the last five trading sessions were Cabot Oil & Gas (COG) and WPX Energy (WPX).
Between September 22 and October 27, 2017, the natural gas rig count fell by 18. However, from September 22, to date, natural gas prices have fallen 2.2%.
Last week (ended October 13, 2017), the natural gas rig count fell by two to 185, but on a YoY (year-over-year) basis, the natural gas rig count rose 76.2%.
Under EQT Corporation’s (EQT) existing ownership, the company owns a 90% limited partner interest and non-economic general partner interest in EQT GP Holdings (EQGP).
Since the beginning of this year, EQT Corporation (EQT) has fallen ~2.1%. The energy sector, reflected in the Energy Select Sector SPDR ETF (XLE), has fallen ~10% since the beginning of 2017.
From October 2 to October 9, 2017, our list of natural gas-weighted stocks on average fell 3.5%, while natural gas November futures fell 2.8% during this period.
On October 9, 2017, natural gas (BOIL) (FCG) November futures closed at $2.83 MMBtu (million British thermal units), which was 1% less than the previous day’s closing price.
In the week ended September 29, 2017, the natural gas rig count fell by one to 189. On a year-over-year basis, the natural gas rig count has risen ~97%.
US crude oil (OIIL) (DBO) prices often influence natural gas prices. In the trailing week, natural gas had a correlation of 89.7% with US crude oil prices.
Because of the Permian’s lowest break-even costs and high IRRs (internal rates of return), producers scooped up prime acreage that could produce at a profit even as crude oil prices stayed low.
In the week ended September 8, 2017, natural gas inventories rose by 91 Bcf (billion cubic feet) to 3,311 Bcf, which was 11 Bcf above the rise expected by the market.
The natural gas–weighted stocks that had the highest correlations with US crude oil (UCO) active futures between September 11 and September 18, 2017, include WPX Energy (WPX), Antero Resources (AR), and Rice Energy (RICE).
According to the data provided in a presentation released by Cabot Oil & Gas (COG) earlier in August, Cabot’s estimated ultimate recovery (or EUR) was the highest compared to its peers in the Marcellus Shale and the Utica Shale.
Between August 25 and September 1, Chesapeake Energy (CHK) and Range Resources (RRC) had the highest correlations of 68.9% and 55.3% with US crude oil (USL) active futures among our list of natural gas–weighted stocks.
EQT’s (EQT) proposed acquisition of Rice Energy (RICE) is expected to add around 1.3 Bcfe (billion cubic feet equivalent) per day to EQT’s natural gas volumes.
Jana Partners submitted a letter to EQT’s board earlier this month, making it clear that it continues to oppose EQT’s intention to acquire Rice Energy (RICE).
Between August 14 and August 21, 2017, natural gas–weighted stocks fell 1.1% compared to a 0.1% rise in the natural gas September futures during this period.
In the week ending August 4, 2017, natural gas inventories rose by 28 Bcf to 3,038 Bcf. The EIA reported natural gas inventory data on August 10, 2017.
Antero Resources (AR) had the highest correlation of 51.7% with US crude oil September futures among natural gas–weighted stocks between July 31, 2017, and August 7, 2017.
In the week ending July 14, 2017, natural gas inventories rose by 28 Bcf to 2,973 Bcf. The market expected a rise of 39 Bcf for the week ending July 14.
In the week ended July 14, 2017, the natural gas rig count fell by two. However, in the trailing year, the natural gas rig count has more than doubled.
On July 7, 2017, the short interest ratio in Chesapeake Energy (CHK) stock was ~15%. In January 2017, Chesapeake Energy’s short interest ratio was ~11.6%.
On Monday, July 3, 2017, activist hedge fund Jana Partners revealed a 5.8% stake in EQT (EQT). The hedge fund is hoping to thwart EQT’s plans to acquire Rice Energy (RICE).
On June 23, 2017, the short interest as a percentage of float in Chesapeake Energy (CHK) stock was ~19%. In January, its short interest ratio was ~12%.
The merger between EQT (EQT) and Rice Energy (RICE) should add around 1.3 Bcfe (billion cubic feet equivalent per day) of production to EQT’s natural gas volumes.
The EQT (EQT)–Rice Energy (RICE) transaction should add around 1.3 Bcfe (billion cubic feet equivalent per day) current production to EQT’s natural gas volumes.
Following the announcement of the EQT (EQT)–Rice Energy (RICE) deal, EQT’s stock was down ~10% on June 19. Rice Energy’s (RICE) stock, on the other hand, rose ~25%.
Chesapeake Energy’s (CHK) short interest ratio, or its short interest as a percentage of its float, was ~18.0% on June 5, 2017. On January 3, its short interest ratio was ~11.6%.
On April 20, 2017, Noble Energy’s short interest as a percentage of its float was ~4.7%. At the beginning of the year, its short interest ratio was ~3.3%.
On April 19, Cabot Oil and Gas’s short interest as a percentage of its float was ~4.5%. At the beginning of the year, its short interest ratio was 4.2%.
On March 3, 2016, natural gas futures touched a 17-year low of $1.64. From March 3, 2016, to April 17, 2017, natural gas prices rose 92.9% on a closing price basis.
On March 3, 2016, natural gas futures touched a 17-year low. From March 3, 2016, to April 3, 2017, natural gas prices rose 90.7% on a closing price basis.
RMP’s natural gathering volume increased 71% year-over-year in 4Q16. The increase was largely driven by the partnership’s strong third-party volume growth.
