Back to top

Image: Bigstock

Natural Gas Price Rise on the Horizon: RRC, EQT, AR Stocks to Gain

Read MoreHide Full Article

Natural gas prices are anticipated to remain relatively stable in the ongoing shoulder season (September through October) due to a balance between supply and demand, with neither heating nor cooling demands causing notable fluctuations in consumption.

Analysts predict that natural gas prices will begin to increase post-October, creating opportunities for exploration and production companies such as Range Resources Corporation (RRC - Free Report) , EQT Corporation (EQT - Free Report) and Antero Resources (AR - Free Report) to benefit.

US Natural Gas Output Lags LNG Export Growth: Price to Rise

The U.S. Energy Information Administration (“EIA”), in its latest short-term energy outlook, indicates that natural gas prices will start rising in 2025. This anticipated increase is primarily due to the U.S. natural gas production not growing fast enough to meet the rise in export of liquefied natural gas (LNG) in the United States.

As the United States increases its LNG exports and the EIA forecasts that the export capacity of LNG in North America will more than double from 2024 to 2028, the domestic natural gas supply will become more constrained, resulting in higher prices. According to EIA, the Henry Hub spot price of the commodity will jump to $3.10 per million British thermal units (MMBtu) next year from lower than $2.00 per MMBtu in August. Higher natural gas prices will thus be favorable for explorers and producers of the commodity.

Natural Gas Explorers to Gain: RRC, EQT, AR

RRC’s Huge Inventory of Natural Gas Drilling Locations

Range Resources is among the top 10 leading producers of natural gas in the United States. The company, carrying a Zacks Rank #3 (Hold), is a pure-play Appalachian producer having a vast inventory of premium drilling locations in the core Marcellus shale play, securing a strong production outlook. The exploration and production company has more efficient and cost-effective operations, allowing it to extract natural gas at a lower cost per well than most of its competitors.

EQT: A Cost-Efficient Integrated Gas Producer

EQT also has a strong footing in the prolific Appalachian Basin and is one of the leading natural gas production companies in the United States. On July 22, EQT completed its acquisition of Equitrans Midstream Corporation, solidifying its status as the most cost-efficient and large integrated natural gas producer in the United States. It carries a Zacks Rank of 3.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AR Outperforms In Terms of Natural Gas Well Productivity

Antero Resources is also a leading natural gas producer with its operations spreading across the Appalachian Basin in West Virginia and Ohio. The #3 Ranked leading upstream energy player is outperforming other companies in the Appalachian region in terms of well productivity, which refers to how effectively and efficiently its wells produce natural gas.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Range Resources Corporation (RRC) - free report >>

EQT Corporation (EQT) - free report >>

Antero Resources Corporation (AR) - free report >>

Published in