From Nasdaq: 2024-09-16 15:00:00

The U.S. Energy Department’s inventory report showed a smaller build in natural gas supplies than expected, nudging prices up slightly. The market remains unstable due to erratic weather patterns. Investors should focus on strong stocks like Range Resources and Coterra Energy while avoiding risky bets like Comstock Resources.

Stockpiles of natural gas rose 40 Bcf, below the forecasted 48 Bcf, contributing to a total stock of 3,387 Bcf. Daily supply averaged 107.8 Bcf, while consumption dropped to 96.8 Bcf, mainly due to decreased power generation usage. Natural gas prices saw a modest rise to $2.31, following a 25% plunge over the past three months.

Companies like APA Corporation and EQT Corporation are scaling back production in response to low natural gas prices, affecting market dynamics. While LNG exports are providing some support, the global market is preparing for a strong winter season. However, oversupply and volatile prices continue to dominate the natural gas sector.

Range Resources is a U.S. independent natural gas producer focused on the Appalachian Basin, while Coterra Energy engages in exploration and production. Both companies have seen mixed earnings performance but are fundamentally sound. On the other hand, Comstock Resources is struggling in the current market environment, with downward EPS revisions signaling risk.



Read more at Nasdaq: Natural Gas Stocks Face Rocky Road: 2 Companies to Consider