Why Antero Resources Stock Plummeted More Than 50% in 2018
Posted on Monday January 14, 2019

It was a rough year for the natural gas producer.

Antero Resources Is Tapping on the Brakes in 2019
Posted on Wednesday January 09, 2019

The natural gas driller is cutting its drilling budget to better match spending with the cash flows it can produce at lower oil prices.

Oil Bounces Back to Bull Market Fueled by OPEC Cuts, Trade Talks
Posted on Wednesday January 09, 2019

Crude ended 2018 in free fall but has reversed course on signs that Saudi Arabia, Russia and other major exporters will follow through on last month’s pledge to slash production -- Saudi Energy Minister Khalid Al-Falih said the plan was on track Wednesday.

Why EIA Data Might Not Satisfy Natural Gas Bulls
Posted on Wednesday January 09, 2019

Will Natural Gas Stay above $3? (Continued from Prior Part) ## Inventories spread and natural gas prices In the week ending December 28, the inventories spread was -17.2%. The inventories spread is the difference between natural gas inventories and their five-year average. During this period, the inventories spread contracted by two percentage points compared to the previous week. On January 4, the EIA reported the natural gas inventory data for the week ending on December 28. ## Natural gas inventories The natural gas price is usually inversely related to the inventories spread. However, the relationship seems to be more biased toward a price downside when inventories rise above the five-year average. The market might be confident about having enough future supply instead of being concerned about demand getting out of hand. Since January 4, the natural gas February futures have fallen 2.5%. During the same period, natural-gas-weighted stocks Southwestern Energy (SWN), Gulfport Energy (GPOR), Range Resources (RRC), and Antero Resources (AR) rose 5.4%, 4.9%, 2.9%, and 2.1%, respectively, and underperformed their peers. The remaining natural-gas-weighted stocks ended in the green in this period. Between January 4 and January 8, the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) and the Energy Select Sector SPDR ETF (XLE) rose 4.4% and ~2.3%, respectively. These ETFs hold natural gas producer stocks. ## Required fall in inventories On January 10, the EIA is scheduled to release its natural gas inventory report for the week ending on January 4. Any fall by more than ~140 billion cubic feet could cause the inventories to expand more into the negative territory, but Reuters analysts expect a draw of just 95 Bcf, which might not be a positive development for natural gas prices. Continue to Next Part Browse this series on Market Realist: * Part 1 - Will Natural Gas Stay above $3? * Part 2 - Steady Natural Gas Rig Count Might Be Trouble for Prices * Part 4 - Natural Gas Futures Spread Is Showing Interesting Divergence