Investing in Natural Gas Despite Recent Declines (ECA, XTO, DVN, XEC, SJT)

Includes: DVN, ECA, SJT, XEC, XTO
by: Kurt Wulff

Because… “gas-fired power produces up to 55% less carbon dioxide than traditional coal-fired power... natural gas is the ideal lower carbon solution...While solar and wind are expected to continue growing rapidly, their energy sources will always be intermittent - the sun does not always shine and the wind does not always blow. That's why the world will continue to rely on fossil fuels as its main source of energy for decades to come. Natural gas is the cleanest fossil fuel available." (BP)

It seems timely to emphasize those sound observations just as natural gas has lost short-term favor in the commodity and stock markets. The leading independent natural gas producer, buy-recommended Encana (NYSE:ECA), is trading at a stock price 28% below the high reached more than five months ago. Other buy-recommended stocks concentrated on natural gas that seem to be lagging in stock price include XTO Energy (XTO), Devon Energy (NYSE:DVN), and Cimarex (NYSE:XEC). Income investors might prefer San Juan Basin Royalty Trust (NYSE:SJT).

Kurt Wulff's McDep Associates offers realtime, independent research services for investors in the energy and utilities sectors. For more information, go to or email Mr. Wulff at

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