3 Natural Gas Stocks To Buy In February: Cabot Oil & Gas, EQT, And Range Resources

NYSE: COG | Cabot Oil & Gas Corporation  News, Ratings, and Charts

The Covid‑19 outbreak triggered an unprecedented and precipitous crude oil demand shock, resulting in a 40% decline in prices in the first quarter of 2020. According to EIA, consumption of natural gas in the U.S. averaged 83.1 billion cubic feet per day (Bcf/d) in 2020, down 2.5% compared to 2019. This collapse was further intensified by a short-lived, yet aggressive, Saudi Arabia-Russia price war.

However, after a 4% decline in 2020, natural gas demand has been returning steadily and is now close to its pre-crisis level with the resumption of industrial activity globally.

The Asia Pacific region accounts for more than half of global gas consumption, driven principally by the development of gas in China and India. With growing optimism surrounding a coronavirus-vaccine-driven economic recovery this year, demand from the industrial and power generation sectors is gradually rebounding. Moreover, experts expect generally upward price pressures in 2021 amid relatively low natural gas production to balance the supply and demand. EIA expects combined U.S. residential and commercial natural gas consumption to average 22.4 Bcf/d in 2021, up 5.8% from 2020.

Though the Biden-led U.S. Presidential administration’s clean energy drive is a potential threat to this industry, the demand for natural gas and oil is expected to hold steady in the near future because the cost of renewable energy infrastructure is substantial.

With a nationwide vaccination drive and V-shaped economic recovery, companies like Cabot Oil & Gas Corporation (COG - Get Rating), EQT Corporation (EQT - Get Rating), and Range Resources Corporation (RRC - Get Rating) are expected to deliver decent returns in the coming months given their disciplined capital allocation and sustainable balance sheets. 

Cabot Oil & Gas Corporation (COG - Get Rating

COG is an independent oil and gas company engaged in the development, exploitation, and marketing of oil and gas properties throughout the continental United States. The company serves primarily industrial customers, local distribution companies, gas marketers, and power generation facilities through gathering systems and pipelines.

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