Goldman Sachs Group Inc.'s (GS) 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.
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