Fri, Nov. 20, 4:13 PM
Fri, Nov. 20, 3:54 PM
- U.S. natural gas in storage cracked the 4T cf level for the first time, according to the latest data from the Energy Information Administration, 10% higher than a year ago and nearly as much gas as the U.S. can store - a milestone that "should terrify energy investors," writes Heard On The Street's Spencer Jakab.
- Inventories traditionally peak at the end of the April-October season when heating demand for the fuel is low or nonexistent, but despite subdued new drilling activity, the EIA thinks storage at the end of Q1 2016 will end with a far higher than usual 1.9T cf, which creates a risk of storage filling up even sooner in next year's April-October period.
- Jakab says the situation will add to the woes among beleaguered natural gas producers, some of which are in financial distress - which could grow more acute; in related news, Chesapeake Energy (CHK -5.6%) is down another 5% today, recording new multiyear lows.
- ETFs: UNG, UGAZ, DGAZ, BOIL, GAZ, FCG, GASL, KOLD, UNL, DCNG
Fri, Nov. 13, 4:20 PM
Fri, Nov. 6, 4:54 PM
Tue, Oct. 27, 11:34 AM
- U.S. natural gas trades below $2/MMBtu for the first time since April 2012 as unusually warm weather for this time of year threatens to slow demand while supplies are high, and some companies hint at a new production boom:
- EQT Corp. (EQT -2.7%) said in an earnings call last Thursday that it had drilled wells in the Utica with very high production rates; “A year ago, it would have been hard to imagine a more prolific play than the Marcellus,” EQT CEO David Porges said. “However, if the deep Utica works, it is likely to be larger than the Marcellus over time.”
- Among major gas producers: CHK -7.8%, SM -5%.
- Earlier: Natural gas -8% as forecasts call for warmer than average weather (Oct. 26)
- ETFs: UNG, XLE, UGAZ, DGAZ, VDE, ERX, OIH, BOIL, GAZ, ERY, FCG, DIG, GASL, DUG, KOLD, BGR, IYE, UNL, FENY, FIF, PXJ, RYE, DCNG, FXN, DDG
Mon, Oct. 26, 2:18 PM
- Natural gas futures are down ~8% as supplies rise toward record levels amid expectations of a warm start to the winter, sending shares of energy companies with heavy exposure to natural gas sharply lower; CHK -8.7%, SM -7.7%, RRC -7.4%.
- Adding to the volatility is the expiration of the November futures contract Wednesday, which recently was trading at $2.06/MMBtu, a level last seen in 2012.
- "This could be a blow off bottom," says Again Capital's John Kilduff, who says the price is hit by expectations that a record amount of natural gas will soon be in storage; weekly data show gas storage at 3.81T cf vs. a record 3.93T cf in November 2012.
- Weather forecasts released last night called for “significant warm trends” across much of the U.S. in the next two weeks, according to MDA Weather Services.
- Crude oil prices also are lower, as lingering concerns over a global supply glut and weakening demand send prices toward their lowest settlement in six weeks.; WTI -1.5% at $43.95/bbl, Brent -0.8% at $47.61.
- ETFs: UNG, USO, OIL, XLE, UGAZ, UCO, DGAZ, UWTI, VDE, ERX, OIH, SCO, BNO, BOIL, GAZ, DBO, DWTI, ERY, FCG, DIG, GASL, DTO, DUG, KOLD, BGR, USL, IYE, UNL, DNO, FENY, FIF, PXJ, OLO, SZO, RYE, DCNG, FXN, OLEM, DDG
Fri, Oct. 23, 4:20 PM
Fri, Oct. 9, 4:15 PM
Mon, Sep. 28, 3:36 PM
- Morgan Stanley chief U.S. equity strategist Adam Parker is waving the white flag on the energy sector, confessing that he and his team "made a really bad call" by going overweight on the group at the beginning of this year.
- Parker now says the supply glut in oil may not improve for another year, at a minimum, and that investors may find a better entry point in 6-9 months.
- "We thought the falling rig count would be a catalyst to spark a dream of higher oil," Parker explains. "We now think rig counts aren’t the way to think about it - it is production, and production isn’t down really at all in the U.S."
- Parker's mea culpa comes as energy stocks are whacked today, with WTI crude -2.8% to $44.43/bbl as signs of slowing global economic growth continue to spark worries about the outlook for energy demand; XLE -3.8%, with E&P (NYSEARCA:XOP) stocks down more than 5% and oil service stocks (NYSEARCA:OIH) off nearly 4%.
- Other ETFs: VDE, ERX, ERY, FCG, DIG, GASL, DUG, BGR, XES, IYE, IEO, IEZ, FENY, PXE, PXI, FIF, PXJ, NDP, RYE, FXN, DDG
Fri, Sep. 25, 4:10 PM
Fri, Sep. 11, 4:12 PM
Fri, Aug. 28, 4:09 PM
Fri, Aug. 21, 4:10 PM
Fri, Aug. 14, 4:31 PM
Fri, Jul. 24, 4:16 PM
Fri, Jul. 17, 4:11 PM
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