Australia markets closed

The Zacks Analyst Blog Highlights: EQT, SilverBow, Montage, Cabot Oil and Southwestern

Zacks Equity Research

For Immediate Release

Chicago, IL –August 20, 2019 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: EQT Corporation EQT, SilverBow Resources, Inc. SBOW, Montage Resources Corp. MR, Cabot Oil & Gas Corp. COG, Southwestern Energy Company SWN.

Here are highlights from Monday’s Analyst Blog:

Natural Gas Prices Kept in Check by Soaring Production

The U.S. Energy Department's weekly inventory release showed a smaller-than-expected increase in natural gas supplies, which led prices to be squeezed up, with an added push in the wake of favorable short-term temperature prediction. But the positive sentiment is unlikely to last and the commodity is expected to give way to pressure from rising production.

Supplies Grew by 49 Bcf

Stockpiles held in underground storage in the lower 48 states rose by 49 billion cubic feet (Bcf) for the week ended Aug 9, below the guidance (of 54 Bcf gain). However, the increase was higher than last year’s increase of 35 Bcf for the reported week and in line with the five-year (2014-2018) average net injection.

The latest rise in inventories puts total natural gas stocks at 2.738 trillion cubic feet (Tcf) - 357 Bcf (15%) above 2018 levels at this time but 111 Bcf (3.9%) under the five-year average.

Fundamentally speaking, total supply of natural gas averaged 96 Bcf per day, unchanged on a weekly basis as dry production remained flat. Daily consumption also remained essentially flat at 86.6 Bcf with 86.8 Bcf in the previous week on static power generation demand.

Prices Edge Up

The natural gas futures market rose following the smaller-than-expected climb in U.S. supplies, with the commodity posting a 3.8% weekly gain and erasing some of the steep losses that have taken it to lows not seen since May 2016 earlier this month. Weather forecasting models predicting hot temperatures in certain regions of the Lower 48 U.S. states that would drive up the air conditioning demand for natural gas also helped lift prices higher

Healthy Supplies to Restrict Major Rebound

The demand for cleaner fuels and the commodity’s relatively lower price has catapulted natural gas' share of domestic electricity generation to 35%, from 25% in 2011. Moreover, new pipelines to Mexico, together with large-scale liquefied gas export facilities have meant that exports out of the U.S. are set for a quantum leap. Finally, higher consumption from industrial projects will likely ensure strong natural gas demand. 

However, record high production in the United States and expectations for healthy growth through 2020 means that supply will keep pace with demand. Therefore, prices are likely to trade sideways but for weather-driven movements.


Natural gas might experience short-lived surge based on positive weather forecasts but any powerful turnaround looks unlikely at the moment. With gas output in the lower 48 states recently hitting a record 92.1 Bcf per day, there is little room for prices to improve meaningfully from their current levels of around $2.20 per MMBtu.    

Gas-Focused Equities Out of Favor

The bearish natural gas fundamentals and its seasonal nature is responsible for the understandable reluctance on investors’ part to dip their feet into these stocks.

Moreover, most natural gas-heavy upstream companies like EQT Corporation, SilverBow Resources, Inc., Montage Resources Corp., Cabot Oil & Gas Corp., Southwestern Energy Company, etc. carry a Zacks Rank #3 (Hold), which means that investors should preferably wait for a better entry point before buying shares in them.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>    

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339                              

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
EQT Corporation (EQT) : Free Stock Analysis Report
Southwestern Energy Company (SWN) : Free Stock Analysis Report
Eclipse Resources Corporation (MR) : Free Stock Analysis Report
Cabot Oil & Gas Corporation (COG) : Free Stock Analysis Report
SilverBow Resources Inc. (SBOW) : Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research