NFE - Natural gas stocks sink as commodity fell 14% on warmer U.S. forecast.

2023-03-06 16:44:10 ET

Natural gas producers plunged Monday after U.S. natgas prices fell by the largest percentage since June on forecasts for much less cold weather and heating demand than previously expected over the next two weeks.

"The volatile March weather pattern imploded over the weekend... and slashed the fundamental support underlying recent price gains," according to EBW Analytics.

Leading natgas producer EQT Corp. ( NYSE: EQT ) was one of the day's biggest decliners on the S&P 500, -4.1% .

Also finishing sharply lower: SilverBow Resources ( SBOW ) -7.1% , Comstock Resources ( CRK ) -6.2% , Southwestern Energy ( SWN ) -5.6% , Cheniere Energy ( LNG ) -4.5% , Antero Resources ( AR ) -4.1% , Chesapeake Energy ( CHK ) -4.1% , Tellurian ( TELL ) -3.8% , New Fortress Energy ( NFE ) -3.7% , Equitrans Midstream ( ETRN ) -3.5% , NextDecade ( NEXT ) -2.9% , Range Resources ( RRC ) -2.7% , Coterra Energy ( CTRA ) -2.6% .

Front-month Nymex natural gas ( NG1:COM ) for April delivery settled -14.5% to $2.572/MMBtu, after the contract soared 18% last week in its best weekly rally since November, as  gas flows to U.S. liquefied natural gas export plants jumped to record highs, with Freeport LNG's export plant in Texas continuing to ramp up.

ETFs: ( NYSEARCA: UNG ), ( UGAZF ), ( BOIL ), ( KOLD ), ( UNL ), ( FCG )

U.S. regulators sent another list of questions seeking information to Freeport LNG on Monday, as they evaluate its request to restart full commercial operations.

The low breakeven point of many EQT's ( EQT ) drilling locations is "a competitive moat that will last a long time," Long Player writes in an analysis posted recently on Seeking Alpha .

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