|Bid||0.00 x 3000|
|Ask||0.00 x 45900|
|Day's Range||3.63 - 3.78|
|52 Week Range||2.53 - 5.60|
|Beta (3Y Monthly)||3.30|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
On November 13, the natural gas futures for December closed at a premium of ~$1.14 to the December 2019 futures. On November 6, the futures spread was at a premium of $0.6. On November 6–13, natural gas December futures rose 15.4%.
In the week ending on November 2, the inventories spread was -16.2%. The inventories spread is the difference between natural gas inventories and their five-year average. The inventories spread contracted by 70 basis points compared to the previous week. On November 8, the EIA (U.S. Energy Information Administration) reported the natural gas inventory data for the week ending November 2.
The natural gas rig count was at 195 last week—two more than the previous week. However, the natural gas rig count has fallen ~87.9% from its record level of 1,606 in 2008.
Hi-Crush's (HCLP) latest deal addresses Chesapeake's demand for Northern White frac sand and related proppant logistics requirements.
Chesapeake Energy (NYSE:CHK) is building a monopoly. The rationale behind the argument is that Chesapeake is undergoing a massive transformation under CEO Doug Lawler that sees it operating in five of the country’s primary energy basins in Pennsylvania, Texas, Oklahoma, Louisiana, and South Dakota. Proof of that, the author suggests, is Chesapeake Energy’s nearly $4 billion acquisition of WildHorse Resource Development (NYSE:WRD), which gives WildHorse shareholders either 5.989 shares of CHK stock per WildHorse share or 5.336 shares and $3 cash.
Chesapeake's (CHK) agreement with Hi-Crush relates to in-basin purchase of Northern White frac sand to support completions program in the Marcellus and Powder River Basins.
Micron (NASDAQ:MU) stock has recovered somewhat from a drop in NAND and now DRAM memory prices. Falling demand wiped out almost half of the value of Micron stock despite rock-bottom price-to-earnings (PE) ratios. More recently, it has recovered somewhat amid a more general stock price recovery.
Investors need to pay close attention to Chesapeake (CHK) stock based on the movements in the options market lately.
On October 31–November 7, our list of natural gas–weighted stocks rose 7.3%, while natural gas December futures rose 9%. On average, natural gas–weighted stocks underperformed natural gas futures during this period.
On November 7, natural gas December futures were unchanged and settled at $3.55 per MMBtu (million British thermal units)—near a nine-month high. According to Reuters, for the next two weeks, Refinitiv analysts have increased the total degree days from 339 on November 6 to 358 on November 7 in the Lower 48 US states. The rise might result in higher natural gas use for heating than previously expected. The total degree days are higher than the 30-year average of 273 for these weeks.
The natural gas–weighted stocks under review that might be positively related to US crude oil December futures’ movements, based on their correlations with US crude oil December futures in the last five trading sessions, are: Cabot Oil & Gas (COG) at 56.8% Chesapeake Energy (CHK) at 46.1%
On November 6, the natural gas futures for December closed at a premium of ~$0.6 to the December 2019 futures. On October 30, the futures spread was at a premium of $0.278. On October 30–November 6, natural gas December futures rose 11.5%.
Southwestern Energy (NYSE:SWN) has again generated interest. A weather-related spike in natural gas prices has again boosted optimism in the sector. It also offers welcome relief as SWN stock has suffered from low natural gas pricing and massive debt.
The natural gas rig count was at 193 last week—unchanged from the previous week. However, the natural gas rig count has fallen ~88% from its record level of 1,606 in 2008.
Q3 2018 Chesapeake Energy Corp Earnings and Acquisition of WildHorse Resource Development Corporation Call
Teva Pharmaceutical (NYSE:TEVA) is doing a lot better this year — up just shy of 20%. Its key drug, Copaxone, which treats multiple sclerosis, is facing generic competition from Mylan (NASDAQ:MYL), among others. The company has sold assets to clean up its balance sheet, which has de-risked the story somewhat.
The catch with an oil stock like Marathon Oil (NYSE:MRO) is that the stock is so heavily dependent on the price of oil. If oil plunges, MRO stock definitely follows. Certainly, Marathon Oil is a well-run company, and Marathon Oil stock looks attractive, particularly after a recent pullback.
For instance, in 2016, Chesapeake Energy stock moved up a whopping 58%, providing hope that a recovery was imminent. This year, shares regained momentum dramatically during the spring, only to have the broader market meltdown get in its way. Since Oct. 30, CHK stock has gained nearly 16%.
Balky Markets We thought, coming in, that Monday trade might be cautious ahead of the US mid-term elections. I don't know how cautious the day's outcomes were, but trading volumes certainly took a breather.