Natural Gas Inventory Rises as Expected

The EIA reported that U.S. working stocks of natural gas totaled 3.58 trillion cubic feet, about 282 billion cubic feet higher than the five-year average of 3.29 trillion cubic feet. Working gas in storage totaled 3.28 trillion cubic feet for the same period a year ago.

U.S. natural gas inventories are about 9% higher than they were a year ago and about 8.6% higher than the 5-year average.

Natural gas futures prices are about 72% higher than they were at their low point of $1.90 per thousand cubic feet in April of this year. Working gas in storage remains above the high end of the five-year average.

Here’s how stocks of the largest U.S. natural gas producers are reacting to today’s report:

Exxon Mobil Corp. (NYSE: XOM), the country’s largest producer of natural gas, is up about 0.1% at $91.33 in a 52-week range of $69.21 to $92.57.

Chesapeake Energy Corp. (NYSE: CHK) is up about 1.2% at $19.02 in a 52-week range of $13.32 to $29.87.

EOG Resources Inc. (NYSE: EOG) is up about 1.6% at $112.40 in a 52-week range of $66.81 to $119.97.

The US Natural Gas Fund (NYSEMKT: UNG) is up about 1% at $20.72 in a 52-week range of $14.25 to $37.64. The Market Vectors Oil Services ETF (NYSEMKT: OIH) is up about 0.3% at $40.22 in a 52-week range of $32.54 to $45.14. The first fund tracks spot prices; the second includes major drillers and services companies.

Paul Ausick