Goldman Sachs Group Inc.'s (GS) - Get Goldman Sachs Group, Inc. (GS) Report dismal second quarter can be traced back to a $100 million wrong way bet on regional natural-gas prices this spring, the Wall Street Journal reported.
Goldman bet that prices in the Marcellus Shale in Ohio and Pennsylvania would rise as the construction of new pipelines ramped up, however prices tanked after the key Rover pipeline faced tougher scrutiny after spilling drilling mud into the Ohio wetlands.
Goldman was still able to beat analysts' earnings expectations, but shares fell nearly 3% following the report.
Goldman Sachs shares are up 0.5% to $222.50 in premarket trading Friday.
More of What's Trending on TheStreet:
- The Stock Market's Sell-Off Spreads Across the Globe -- The Latest
- Amazon Is Absolutely 'Doing Great Damage.' Duh, Mr. President, That's Business
- You Can't Price in Pure Mass Chaos: Market Recon
- Apple Should Be Terrified By How Much Samsung Is Spending on Its Future