This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

9 Marcellus Shale Stocks With Top Buy Ratings

Stocks in this article: CHK PVA CRZO CNX REXX GST ECT

NEW YORK ( TheStreet) -- Chesapeake Energy (CHK), Penn Virginia (PVA), Carrizo Oil & Gas (CRZO), Consol Energy (CNX), Rex Energy (REXX), Gastar Exploration (GST), ECA Marcellus Trust (ECT), The Williams (WMB) and Magnum Hunter Resources (MHR) are Marcellus stocks with analysts' buy ratings of 88%, as polled by Bloomberg. Based on average 12-month price targets, the above stocks have up to 41% upside potential.

The Marcellus Shale is the largest natural gas shale play in the U.S. and the most attractive target for energy development. Although the formation was recognized as a reservoir rock for several decades, recent high oil prices and drilling technology upgrades rendered the asset economically viable.

The development of Marcellus region between Pennsylvania and West Virginia is under way. Engelder, a geosciences professor at Pennsylvania State University estimates recoverable natural gas reserves in the region at 489 trillion cubic feet (Tcf). The Marcellus is estimated to be the second largest, behind the South Pars field in Qatar and Iran, and the value of recoverable reserves is pegged at around two trillion dollars.

Economic and environmental benefits of natural gas would ensure the development of the Marcellus basin. From about 1,100 wells drilled in West Virginia and Pennsylvania during 2010, the well count is expected to increase to 1,700 by 2020. Given this scenario, Marcellus natural gas production could reach 4 billion cubic feet per day by 2020 compared to 600 million cubic feet during 2009. Besides employment, development of the Marcellus Shale will improve tax collections to local, state and federal governments to around $9 billion by 2020 from $1.7 billion in 2009.

Key factors that could hamper the development of the Marcellus basin are stringent environmental regulations and imposition of severance tax that could challenge future activity in this region.

We have identified 9 Marcellus Shale stocks that received analysts' top buy ratings and hold the potential to deliver attractive returns over the next one year. Analysts' consensus estimate indicates an average return of 16% for the portfolio and the potential to deliver up to 40% upside over the next one year.

1 of 10

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs