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Inventory and Production Influence the Natural Gas Market (Continued from Prior Part) Natural gas inventory
The EIA (U.S. Energy Information Administration) released its monthly STEO (Short-Term Energy Outlook) report on September 9, 2015. The US agency estimated that the US natural gas stockpile rose by 18% from the previous year to 3,193 Bcf (billion cubic feet) for the week ending August 28, 2015. It’s 4% more than five-year average of 3,134 Bcf. The long-term rise in the natural gas production has been the key driver of the rise in the natural gas inventory.
Weather and inventory
The EIA also expects that the natural gas inventory could hit 3,840 Bcf by the end of October 2015. It’s 43 Bcf more than the five-year average. However, the EIA might not have considered the unusually warm weather conditions in late September 2015. This could draw down the natural gas inventory. So, we could see fall in the natural gas inventory. This could benefit natural gas prices. However, a weather-related surge in prices is short-lived. Prices could only be sustained long term due to a rise in the natural gas demand.
Rising natural gas prices are positive for upstream players’ margins like Cimarex Energy (XEC), Chesapeake Energy (CHK), and Devon Energy (DVN). These companies account for 3.63% of the SPDR Oil and Gas ETF (XOP). These stocks’ natural gas production mix is more than 43% of their total production. Oil and gas ETFs like the Energy Select Sector SPDR ETF (XLE) and XOP are also impacted by natural gas prices.
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Cimarex Energy Co.
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CODE : XEC |
ISIN : US1717981013 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Cimarex Energy is a producing company based in United states of america. Cimarex Energy is listed in Germany and in United States of America. Its market capitalisation is US$ 8.3 billions as of today (€ 7.2 billions). Its stock quote reached its highest recent level on May 23, 2018 at US$ 99.89, and its lowest recent point on September 30, 2021 at US$ 87.20. Cimarex Energy has 95 438 121 shares outstanding. |