COM - Are institutional investors coming around on the US natural gas story?
Natural gas (UNG) has been on a tear in 2022; in the middle of shoulder season, Henry Hub (NG1:COM) is up 135% from January levels, and almost 200% from the year-ago period. However, looking at the equities, it would be tough to tell; oil prices (CL1:COM) are up ~50% ytd, and yet oil equities and refiners top the leaderboard in the sector, with Occidental (OXY), PBF (PBF) and Kosmos (KOS) up 120-140%. Energy stocks generally track commodity performance; however, this week natural gas (NG1:COM) has traded up ~5%, while natural gas equities like Southwestern (SWN), SM (SM), Range (RRC) and Antero (AR) have traded up more than 20%. Thursday alone, natural gas (NG1:COM) prices fell, while many natural gas equities traded higher by 4-8%. Recent production weakness, paired with rapidly rising LNG exports, and an inability to substitute coal into the power stack has led to low natural gas inventories and
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Are institutional investors coming around on the US natural gas story?