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Natural Gas Rally Isn't Supported by Long-Term Fundamentals (Part 1 of 3) Natural gas prices rally
Below is our natural gas price fundamental analysis. For an in-depth look at natural gas and related companies, sectors, and drivers, please refer to our Energy and Power page.
Natural gas futures for June delivery skyrocketed by 5.34%—led by warm weather estimates. This might increase the demand for natural gas. Prices closed at $2.88 per MMBtu (British thermal units in millions) on Friday, May 8, 2015. The United States Natural Gas Fund LP ETF (UNG) replicated the US benchmark natural gas prices. UNG increased by 4.28% and closed at $14.13 on May 8.
Commodity Weather Group is a weather forecasting agency. It reported that the above normal warm weather is expected in the Northeast and mid-Atlantic regions of US in the first half of May 2015. New York will also experience warmer weather. This will drive the natural gas demand for cooling needs.
Last week, the EIA (U.S. Energy Information Administration) reported that weekly gas in storage rose by 76 Bcf (billion cubic feet)—against the industry consensus of an increase of 74 Bcf for the week ending May 1. The next report is expected to release on Thursday, May 14, 2015.
This is the sixth up day for gas prices over the last ten trading sessions. During the same period, prices increased by 1.63% more on the up days than on the average down days. June natural gas futures ruled the charts across all of the commodities at the close of trade on Friday. Gas prices appreciated by a meager 0.66% YTD (year-to-date)—led by the improved demand outlook.
The exponential increase in natural gas prices is positive for upstream players like Devon Energy (DVN), Memorial Resources (MRD), and ConocoPhillips (COP). They account for 3.54% of the Spider Oil and Gas ETF (XOP). These companies have a natural gas production mix that’s greater than 43% of their total production.
Continue to Part 2 Browse this series on Market Realist:
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Devon Energy Corporation
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CODE : DVN |
ISIN : US25179M1036 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Devon Energy est une société de production minière et de pétrole basée aux Etats-Unis D'Amerique. Devon Energy détient divers projets d'exploration au Canada. Son principal projet en exploration est JACKFISH OIL SANDS PROJECT au Canada. Devon Energy est cotée aux Etats-Unis D'Amerique. Sa capitalisation boursière aujourd'hui est 27,6 milliards US$ (25,8 milliards €). La valeur de son action a atteint son plus bas niveau récent le 18 août 1995 à 10,00 US$, et son plus haut niveau récent le 22 février 2008 à 99,19 US$. Devon Energy possède 525 000 000 actions en circulation. |