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!

Natural Gas Falls on Production Outlook

Stocks in this article: KMP BP DVN NFX CQP LNG EOG

NEW YORK ( TheStreet) -- Natural gas bulls were feeling the heat as futures extended losses from the previous trading session on bearish production growth trends.

Natural gas for May delivery was falling 2.5% to $4.098 a million British thermal units.

A Raymond James energy report notes that Energy Information Administration (EIA) data for January indicates that natural gas production fell 0.34 Bcf (billion cubic feet) a day in that month as extremely cold weather curtailed domestic production. But "hidden in the report was the fact that December volumes were revised upwards 0.25 Bcf/d on average indicating we grew even more than we had previously thought."

The Raymond James report noted that gas prices were unable to hit $5/Mcf (million cubic feet) this winter, despite very cold weather.

"Although we expect to see February's report contain similar weather related production curtailments, the underlying upward growth trend we are modeling leads us to believe that full-year gas prices should average $3.75/Mcf."

On the demand trends, the Raymond James report noted that warmer weather in March had caused natural gas bulls to "feel the heat" -- though the natural disaster-induced nuclear crisis in Japan and early spring cold burst recently pushed prices back up to the $4/Mcf range from the lower end of the $4 range.

Recently, the EIA identified 6,622 Tcf (trillion cubic feet) of recoverable shale gas resources across 32 countries, which Raymond James says can double the world's natural gas reserves. However, the financial firm says for now, the commerciality of key resources remains uncertain, as a number of operational and policy hurdles need to be overcome first.

Natural gas stocks were mostly down. Kinder Morgan Energy Partners (KMP) was falling 0.4% to $74.91, BP (BP) was down 1.8% to $44.16, Devon Energy (DVN) was falling 2.3% to $85.80, Newfield Exploration (NFX) was losing 2.2% to $69.49, Cheniere Energy Partners, L.P. (CQP) was 1% lower to $18, Cheniere Energy, Inc. (LNG) was falling 2.2% to $8.21 and EOG Resources (EOG) was down 1.5% to $109.36.

>>Search for Highest Dividends by Rate or Yield

More on Earnings
Today's Top Earnings
Earnings Calendar

-- Written by Andrea Tse in New York.

>To contact the writer of this article, click here: Andrea Tse.

>To follow the writer on Twitter, go to Andrea Tse.

>To submit a news tip, send an email to:

Copyright 2011 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

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