Natural Gas Dips on Tariffs and Mild Weather: What Lies Ahead?
Werte in diesem Artikel
The U.S. Energy Department's latest inventory report showed a higher-than-expected increase in natural gas supplies. The bearish inventory numbers, together with the onset of the low-demand season and tariff-related uncertainties, pressured natural gas futures, which settled with a big loss week over week.At this time, we advise investors to focus on stocks such as Antero Resources AR, Coterra Energy CTRA and Gulfport Energy GPOR.EIA Reports a Build Bigger Than Market ExpectationsStockpiles held in underground storage in the lower 48 states rose by 57 billion cubic feet (Bcf) for the week ended April 4, surpassing analysts’ guidance of a 52 Bcf addition. The increase compared with the five-year (2020-2024) average net addition of 17 Bcf and last year’s growth of 16 Bcf for the reported week.The latest build put total natural gas stocks at 1,830 Bcf, 450 Bcf (19.7%) below the 2024 level, and 40 Bcf (2.1%) lower than the five-year average.The total supply of natural gas averaged 112.4 Bcf per day, up 2.3 Bcf per day on a weekly basis, mainly due to higher shipments from Canada.Meanwhile, daily consumption rose to 108.8 Bcf from 101.7 Bcf in the previous week, reflecting higher residential/commercial usage and increased power demand.Natural Gas Prices Finish LowerNatural gas prices took a hit last week, slipping 8.1% to settle at $3.527 on the New York Mercantile Exchange. The drop followed a larger-than-expected inventory build—the fourth in a row—which helped narrow the five-year average storage deficit that had swelled past 200 Bcf earlier this year after an unusually cold January and February. With March bringing milder temperatures, injection season kicked off early, further easing the gap. Now, traders are turning cautious. As the market enters the low-demand shoulder season, falling heating demand is front and center. On top of that, growing fears over the U.S.-China trade dispute are fueling volatility and clouding the outlook for LNG exports, even though feedgas flows to export terminals remain solid. While near-term fundamentals lean bearish, the market remains on edge, waiting to see how trade dynamics and seasonal shifts play out.Final ThoughtsBased on several factors, the space is currently quite unpredictable and spooked by sudden changes in weather, production patterns and tariff-related developments. As such, investors are advised to exercise caution and opt for stocks with strong fundamentals and potential to overcome the current headwinds.3 Stocks to Focus onAntero Resources: It is one of the leading natural gas producers in the United States. Antero Resources has more than two decades of premium low-cost drilling inventory in the prolific Appalachian Basin, indicating a strong production outlook. AR churned out 316 billion cubic feet equivalent (Bcfe) in the most recent quarter, of which more than 60% was natural gas.The Zacks Consensus Estimate for Antero Resources’ 2025 earnings per share indicates an astounding 1,604.8% year-over-year growth. Over the past 60 days, the Zacks Rank #2 (Buy) AR has seen its 2025 EPS projection move up around 20.5%.You can see the complete list of today’s Zacks #1 Rank stocks here.Coterra Energy: It is an independent upstream operator primarily engaged in the exploration, development and production of natural gas. Headquartered in Houston, TX, the firm owns some 183,000 net acres in the gas-producing Marcellus Shale of the Appalachian Basin. The Zacks Rank #3 (Hold) company’s share of natural gas in its overall production is around 65%.Coterra’s expected earnings per share growth rate for three to five years is currently 32.2%, which compares favorably with the industry's growth rate of 19.3%. Valued at around $19 billion, Coterra Energy has a trailing four-quarter earnings surprise of roughly 6.9%, on average.Gulfport Energy: Gulfport Energy is a natural gas-focused exploration and production company headquartered in Oklahoma City, OK. Operating primarily in the Utica Shale in Ohio and the SCOOP play in Oklahoma, Gulfport has emerged from bankruptcy with a stronger balance sheet and a free cash flow-oriented strategy. With more than 90% natural gas production, the company prioritizes Utica development to drive free cash flow, reduce debt and align with ESG-focused investor expectations.The Zacks Consensus Estimate for Gulfport Energy’s 2025 earnings per share indicates 76.4% year-over-year growth. This Zacks Rank #3 firm has a Growth Score of B. Over the past 60 days, the Zacks Consensus Estimate for GPOR’s 2025 earnings has gone up around 23.9%.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Gulfport Energy Corporation (GPOR): Free Stock Analysis Report Antero Resources Corporation (AR): Free Stock Analysis Report Coterra Energy Inc. (CTRA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
Quelle: Zacks