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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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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Cimarex Energy est une société de production minière basée aux Etats-Unis D'Amerique. Cimarex Energy est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 8,3 milliards US$ (7,2 milliards €). La valeur de son action a atteint son plus haut niveau récent le 23 mai 2018 à 99,89 US$, et son plus bas niveau récent le 30 septembre 2021 à 87,20 US$. Cimarex Energy possède 95 438 121 actions en circulation. |