Natural Gas Build Only a Fraction of Needed Recovery

Energy

Published: April 10, 2014 11:00 am

Last Updated: April 28, 2020 2:17 am

Source: thinkstock

The U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stocks increased by 4 billion cubic feet for the week ending April 4, compared with an expected increase of between 5 billion and 22 billion cubic feet anticipated by analysts. The inventory increase is the first since last November.

Natural gas futures prices were trading about flat in advance of the EIA’s report, at around $4.53 per million BTUs, and rose to $4.64 immediately following the report.

The weather is finally warming over most of the United States, but is expected to follow the usual spring pattern of bouncing from warmer to cooler. The weather is expected to cool off somewhat next week, increasing the demand for heating and likely keeping a lid on injections into storage.

The country’s natural gas supply fell below 1 trillion cubic feet a month ago for the first time since 2003. Analysts are divided on how much natural gas can be added to the nation’s inventory between now and October. None, however, sees inventories rising to the mid-November 2013 level of 3.83 trillion cubic feet.

The EIA reported that U.S. working stocks of natural gas totaled 826 billion cubic feet, about 997 billion cubic feet below the five-year average of 1.82 trillion cubic feet. Working gas in storage totaled 1.66 trillion cubic feet for the same period a year ago. Natural gas inventories have leveled off a bit but remain below the bottom of the five-year range.

Here is how stocks of the largest U.S. natural gas producers are reacting to this report:

Exxon Mobil Corp. (NYSE: XOM), the country’s largest producer of natural gas, was up about 0.4% to $97.70, in a 52-week range of $84.79 to $101.74.

Chesapeake Energy Corp. (NYSE: CHK) was up about 1.7%, at $26.74 in a 52-week range of $18.21 to $29.06.

EOG Resources Inc. (NYSE: EOG) was up 0.7% to $99.70. The 52-week range is $56.03 to $103.30.

ALSO READ: Stock Winners From Natural Gas Storage Depletion

ALERT: Take This Retirement Quiz Now (Sponsored)

Take the quiz below to get matched with a financial advisor today.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Take the retirement quiz right here.