The U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stocks increased by 92 billion cubic feet (Bcf) for the week ending September 5. That compared with an expected increase of 82 Bcf anticipated by analysts under a Dow Jones report. At 2,801 Bcf, total working gas is below the five-year historical range, but we are seeing this less-than-bullish report bleed into the companies who live and thrive off of natural gas.
One thing stood out in this report as the dog days of summer are starting to wane. Stocks were 443 Bcf less than last year at this time, and 463 Bcf below the five-year average of 3,264.
In the East Region, stocks were 215 Bcf below the five-year average, following net injections of 60 Bcf. Stocks in the Producing Region were 211 Bcf below the five-year average of 1,052 after a net injection of 20 Bcf. Stocks in the West Region were 38 Bcf below the five-year average after a net addition of 12 Bcf.
Here is how stocks of the largest U.S. natural gas producers reacted to this report:
Exxon Mobil Corp. (NYSE: XOM), the country’s largest producer of natural gas, was down 0.5% at $96.34. Exxon Mobil is likely reacting more to oil prices than gas prices. Admittedly, natural gas is still way behind oil in importance for the largest energy producer. Its 52-week range is $84.79 to $104.76.
Chesapeake Energy Corp. (NYSE: CHK) was down more than 2% to $24.96, down on the open and then chasing even lower prices after the natural gas inventories report from the EIA. Chesapeake’s 52-week range is $22.63 to $29.92.
EOG Resources Inc. (NYSE: EOG) was actually higher by $0.40, at $102.41 in somewhat light trading volume after the EIA report. Its market cap of $56 billion remains formidable, and the 52-week trading range is $78.01 to $118.89.
The United States Natural Gas ETF (NYSEMKT: UNG) was the big casualty, and it shows just how weak natural gas was after the EIA talked about rising natural gas stockpiles. The ETF was down 3.3% at $20.83, against a 52-week range of $16.91 to $27.89.
As far as natural gas itself, October delivery futures lost 1.7% more after the release, and the front month contract fell 3.3% to $3.824 in NYMEX trading.
READ ALSO: Crude Price Tumbles as Gasoline Stockpile Booms
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