|Bid||0.00 x 2900|
|Ask||0.00 x 2200|
|Day's Range||25.61 - 26.07|
|52 Week Range||20.95 - 29.57|
|Beta (3Y Monthly)||-0.01|
|PE Ratio (TTM)||89.07|
|Earnings Date||Oct 25, 2018 - Oct 29, 2018|
|Forward Dividend & Yield||0.28 (1.09%)|
|1y Target Est||26.96|
The week in review: Stocks slide as oil prices fall, the hard sell on Brexit, midterm election recounts continue, California wildfires rage, trouble in Gaza, and a White House housecleaning.
In the Marcellus Shale, Cabot (COG) estimates roughly 3,000 of undrilled prospective drilling locations, reflecting strong production prospects.
On November 15, natural gas’s implied volatility was 86.8%, which was ~73.6% above its 15-day moving average. In the trailing week, natural gas’s implied volatility rose 83.1%. Natural gas December futures rose 14% during the same period. Since June, these two metrics have been moving in tandem.
On November 7–14, our list of natural gas–weighted stocks fell 3.7% despite a rise of 36.1% in natural gas December futures. On average, natural gas–weighted stocks underperformed natural gas futures during this period.
The natural gas–weighted stocks under review, that might be inversely 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 -89.7% Gulfport Energy (GPOR) at -66.7% Southwestern Energy (SWN) at -36.7%
STOCKSTOWATCHTODAY BLOG Natural-gas bulls and crude-oil bulls will likely be at odds. It’s not a mere coincidence that gas futures prices climbed sky-high just as crude futures were free-falling. Natural-gas futures for December delivery have declined sharply Thursday, after climbing 18% on Wednesday, the largest one-day percentage gains since September 2004.
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.
The low-cost producer of natural gas is setting the standard among energy production companies by pledging to return half its growing free cash flow to shareholders in dividends and stock buybacks. Read more in Barron’s Picks.
On November 2–9, the United States Natural Gas ETF (UNG) rose 13%, while the ProShares Ultra Bloomberg Natural Gas ETF (BOIL) rose 25%. These ETFs track natural gas futures. UNG holds active natural gas futures contracts, while BOIL’s objective is to track twice the daily changes of the Bloomberg Natural Gas Subindex.
On November 2–9, natural gas December futures rose 13.2% and settled at $3.719 per MMBtu (million British thermal units) on November 9—the highest closing level for active natural gas futures since December 30, 2016. Last week, natural gas futures recorded the second-largest weekly gain in 2018.
On November 8, natural gas’s implied volatility was 47.4%, which was ~10.7% above its 15-day moving average and the highest level since January 30. In the trailing week, natural gas’s implied volatility rose 15.9%. Natural gas December futures rose 9.5% during the same period. Since June, these two metrics have been moving in tandem.
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%
In the week ending on October 26, the inventories spread was -16.9%. The inventories spread is the difference between natural gas inventories and their five-year average.
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.
Cabot (COG) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
U.S. equities are rallying nicely on Monday, kicking off the week of the sure-to-be-contentious midterm elections on a positive note as President Donald Trump again pulls the “China trade deal hope” lever to bolster prices. Today, Trump said Beijing wants to negotiate and that he could agree to a “fair deal” if offered.
On October 26–November 2, the United States Natural Gas ETF (UNG) rose 1.5%, while the ProShares Ultra Bloomberg Natural Gas ETF (BOIL) rose 0.3%. These ETFs track natural gas futures. UNG holds active natural gas futures contracts, while BOIL’s objective is to track twice the daily changes of the Bloomberg Natural Gas Subindex.
On October 26–November 2, downstream stock PBF Energy (PBF) gained the most on our list of energy stocks. In fact, the VanEck Vectors Oil Refiners ETF (CRAK) rose 3.1%—the most among major energy subsector ETFs. On October 31, PBF Energy announced its third-quarter earnings results. The company reported an adjusted net income of $1.13 per share—compared to analysts’ consensus estimates of $1.03 per share.
On October 26–November 2, natural gas December futures rose 1.8% and settled at $3.284 per MMBtu (million British thermal units) on November 2—the highest closing level for active natural gas futures since October 17. The weather forecast for a colder winter and inventories 16.9% below their five-year average might be behind the rise in natural gas prices.
Martin Marietta Materials, Inc. (MLM) today announced the appointment of Dorothy M. Ables to its Board of Directors, effective November 5, 2018. With Ms. Ables’ appointment, the Martin Marietta Board comprises 10 directors, four of whom have joined since 2016. Ms. Ables will serve on Martin Marietta’s Audit Committee. Ms. Ables brings significant financial and operational leadership experience to the Martin Marietta Board.
Most of the natural gas–weighted stocks on our list had negative or mild positive correlations with US crude oil prices in the seven calendar days to October 31.
Stocks on the move in midday trading. Apple down 3%, Semiconductor down sharply by 2.3%, Berkshire up and announces buy-back and more. Yahoo Finance's Julie Hyman discuss.