Natural Gas Inventory Falls as Expected

The EIA reported that U.S. working stocks of natural gas totaled 3.65 trillion cubic feet, about 413 billion cubic feet higher than the five-year average of 3.24 trillion cubic feet. Working gas in storage totaled 3.57 trillion cubic feet for the same period a year ago.

Storage levels remain above the top of the five-year range and the draw on stocks is considerably below last year’s draw of 87 billion cubic feet due to somewhat warmer weather. Gas prices remain down more than 15% from recent highs around $3.93 per thousand cubic feet.

Here’s how stocks of the largest U.S. natural gas producers are reacting to today’s report:

Exxon Mobil Corp. (NYSE: XOM), the country’s largest producer of natural gas, is down about 1.2% at $85.80 in a 52-week range of $77.13 to $93.67.

Chesapeake Energy Corp. (NYSE: CHK) is down about 0.8% at $16.72 in a 52-week range of $13.32 to $26.09.

EOG Resources Inc. (NYSE: EOG) is down about 1.6% at $119.71 in a 52-week range of $82.48 to $124.50.

The US Natural Gas Fund (NYSEMKT: UNG) is up 1.6% at $19.47 in a 52-week range of $14.25 to $27.00. The Market Vectors Oil Services ETF (NYSEMKT: OIH) is down about 1.1% at $7.80 in a 52-week range of $32.54 to $45.14. The first fund tracks spot prices; the second includes major drillers and services companies.

Paul Ausick