Natural gas prices are soaring as the world increasingly comes to terms with the coming energy crisis – one that already has Europe in its grasp. And it looks quite ready to spread to the rest of the world.
Underproduction, poor logistics, and a move away from dirty coal sourcing for electricity and heat are to blame, along with poor planning and the surprising pace of the growth of energy demand over recent months.
The result is inventories in Europe and China at surprisingly low levels for this time of year as we head toward the winter when natural gas demand will dramatically increase.
Awareness of the coming squeeze is making matters worse as large producers like Russia grow reluctant to export in favor of shoring up their own stockpiles.
China’s blackouts aren’t helping either. As major players around the world watch stoplights and semiconductor factories go off-line in mainland China, the scramble to hoard power is ramping up. As a result, Natural Gas prices have tripled in Europe and Coal prices have quadrupled in Newcastle.
For investors, it means stocks that represent companies with Nat Gas assets in the ground are seeing huge interest. We cover some of the more interesting stories in the space below.
Range Resources Corp. (NYSE:RRC) shares are breaking out in a big way. The stock broke above $20 resistance to kick off this week, demonstrating how well tethered RRC shares are to the broad Nat Gas commodity market, even slightly outpacing the big squeeze in NG futures on Monday.
According to company materials, RRC engages in the exploration, development and acquisition of natural gas and oil properties in the Appalachian and Midcontinent regions.
Range Resources Corp. (NYSE:RRC) recently announced the appointment of Reginal W. Spiller to its Board of Directors, concurrent with the retirement of Dr. Steffen A. Palko, effective September 27, 2021.
Range Chairman, Greg Maxwell stated, “We are very pleased to announce the addition of Reg Spiller to the Range board. Mr. Spiller has extensive experience in the oil and gas industry and has served our country at a high level in the U.S. Department of Energy. He is active with the National Energy Technology Laboratory (NETL) programs in southwestern Pennsylvania and West Virginia, as well as other national labs. He has over 40 years of international and domestic oil and gas and energy capital market experience. His expertise and leadership in the energy industry, combined with his public service experience advancing energy technologies, make him a strong addition to Range’s board.”
And the stock has been acting well over recent days, up something like 18% in that time.
Range Resources Corp. (NYSE:RRC) managed to rope in revenues totaling $684.4M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 78.8%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($464K against $925.9M, respectively).
Camber Energy Inc (NYSEAMERICAN:CEI) is another big momentum play in the energy space with exposure to oil and gas assets through its majority-owned subsidiary, Viking Energy Group Inc (OTC US:VKIN). CEI shares have been a top momentum winner lately as the previously underpriced stock starts to power higher on increasing recognition by investors as enthusiasm builds for energy assets.
The company and its subsidiaries own and invest in oil and gas assets located in North America in Kansas, Missouri, Texas, Louisiana, and Mississippi. With its firm financial backing, one can easily imagine a lot of expansion opportunity here as well.
Camber Energy Inc (NYSEAMERICAN:CEI) has also been making strides to become a leader in the emerging carbon capture marketplace after recent announcing that VKIN entered into an Exclusive Intellectual Property License Agreement with ESG Clean Energy, LLC regarding ESG’s patent rights and know-how related to stationary electric power generation, including methods to utilize heat and capture carbon dioxide.
The license is exclusive for all of Canada, and is non-exclusive for up to twenty-five locations in the United States. According to its release, the ESG Clean Energy System is designed to generate clean electricity from internal combustion engines and utilize waste heat to capture approximately 100% of the carbon dioxide (CO2) emitted from the engine without loss of efficiency, and in a manner designed to facilitate the production, for sale, of precious commodities, such as distilled/de-ionized water, UREA (NH4), ammonia (NH3), ethanol, and methanol.
“In my view this transaction positions us as an industry leader in terms of being able to assist with the power generation needs of commercial and industrial organizations while at the same time helping them reduce their carbon footprint to satisfy regulatory requirements or to simply follow best ESG-practices,” commented James Doris, President and Chief Executive Officer of Camber. “We are excited to be able to use the platform of Simson-Maxwell Ltd., our recently acquired majority-owned subsidiary, to promote the ESG Clean Energy System.”
Camber Energy Inc (NYSEAMERICAN:CEI) is only starting to get its due so we would caution against overreacting to the seeming scale of the stock’s recent gains. The stock has a tight float of 25 million shares with over 23% of that float held short, according to Yahoo Finance statistics, and the technicals on a long-term chart suggest that a breakout above the $3/share zone might not have obvious technical resistance until the low teens.
Cheniere Energy, Inc. (NYSEAMERICAN:LNG) is a key player in the Nat Gas space. Shares of LNG have been launching higher over recent weeks in a primary breakout to new all-time highs, nearing the key $100/share level.
The company engages in liquefied natural gas (LNG) related businesses. It owns and operates LNG terminals, and develops, constructs, and operates liquefaction projects near Corpus Christi, Texas, and at the Sabine Pass LNG terminal.
Cheniere Energy, Inc. (NYSEAMERICAN:LNG) recently announced that its Board of Directors has approved a comprehensive, long-term capital allocation plan designed to achieve an investment grade balance sheet, return significant capital to shareholders over time, and continue to invest in accretive organic growth.
“Over the past five years, we have successfully executed on our operating, commercial and financial goals, which now serve as the foundation for this comprehensive capital allocation plan for Cheniere’s stakeholders. The Plan is built from our guiding principles of maintaining a strong, sustainable balance sheet, funding financially disciplined accretive growth, and returning capital to shareholders through share repurchases and dividends,” said Jack Fusco, Cheniere’s President and Chief Executive Officer. “Our accomplishments over the past five years have led us to this point, and the Plan helps ensure Cheniere’s long-term success by strengthening our financial position, commencing meaningful shareholder returns, and committing to our disciplined approach to deploying growth capital.”
And the stock has been acting well over recent days, up something like 13% in that time.
Cheniere Energy, Inc. (NYSEAMERICAN:LNG) managed to rope in revenues totaling $3.4B in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 39%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($2.2B against $3.5B, respectively).
Other top players in the Natural Gas space include Cabot Oil & Gas Corporation (NYSE:COG), Chesapeake Energy (NASDAQ:CHK), Devon Energy Corp (NYSE:DVN), and CNX Resources Corp (NYSE:CNX).
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