Natural Gas Storage Deficit To 5-Year Average Widens Further

The secular tailwinds mentioned above could see natural gas eventually settle well above the $3 per MMBtu mark before the end of the winter. The perceived price strength augurs well for natural gas-heavy upstream companies like Cabot Oil & Gas Corporation (COG - Free Report) , Chesapeake Energy Corporation (CHK - Free Report) , Comstock Resources, Inc. (CRK - Free Report) , Eclipse Resources Corporation (ECR - Free Report) , Gulfport Energy Corporation (GPOR - Free Report) and Southwestern Energy Company (SWN - Free Report) . However, each of these firms has a Zacks Rank #3 (Hold), which means that investors should preferably wait for a better entry point before buying shares in them.

Meanwhile, if you are looking for a near term natural gas play, CNX Resources Corporation (CNX - Free Report) may be an excellent selection. This company has a Zacks Rank #1 (Strong Buy).

CNX Resources is a natural gas-focused exploration and production company with primary focus on the Marcellus and Utica Shales of the Appalachian Basin. More than 90% of CNX Resources’ production is comprised of natural gas. In the last 60 days, four earnings estimates moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings has risen 42.3% in the same period.

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Beating Buffett 2 years ago Member's comment

That’s okay - the Wall Street liberals are convinced that #natgas is a waste byproduct from #oil #fracking. There’s no shortage.

IB Trading 2 years ago Member's comment

Agreed, there’s so much gas in the Permian that they have to burn it off because there’s no place to store it.

Ayelet Wolf 2 years ago Member's comment

I'm no oil expert but I've never hears such a thing. Are you sure?

IB Trading 2 years ago Member's comment

I’m positive that I’m right and that even though the National tank is headed to “E” that there’s a glut- #JimCramer said so!