Low natural gas prices battering energy stocks

After a promising start to the year, stock prices have fallen for several energy companies exposed to natural gas prices.
by Paul Monies Published: April 25, 2012
Advertisement
;

Since the year began, Chesapeake shares have fallen almost 24 percent. Shares, which were more than $25 a month ago, closed at $17.77 Tuesday.

Devon shares jumped to as high as $75.81 in March before falling again more recently. For the year, the company's gains are essentially flat. Devon closed at $66.79 per share Tuesday.

SandRidge is down 14 percent for the year, but has traded in the $7 to $8.50 per share range. It closed at $7.28 Tuesday.

Continental posted gains of almost 20 percent for the year. After starting the year at almost $70 per share, it reached $94.93 in late February. Shares have since declined and closed at $83.42 Tuesday.

Dollarhide said energy stocks had a good first few months this year, driven by positive news about additional oil discoveries in the Bakken Field in North Dakota and federal legislative prospects for compressed natural gas for transportation. As the price of natural gas continued to fall, though, so did the stocks for energy companies that are reliant on natural gas production, he said. Those companies are scrambling to switch production to oil and natural gas liquids, which command higher prices on the commodities markets than dry gas.

CONTRIBUTING:

Adam Wilmoth, Energy Editor


by Paul Monies
Energy Reporter
Paul Monies is an energy reporter for The Oklahoman. He has worked at newspapers in Texas and Missouri and most recently was a data journalist for USA Today in the Washington D.C. area. Monies also spent nine years as a business reporter and...
+ show more


Trending Now


AROUND THE WEB

  1. 1
    Alek Wek On Her Journey From Refugee To Supermodel
  2. 2
    BP Oil Spill Caused Sickness In Fish, Researchers Find
  3. 3
    LeBron James' move could signify new NBA business model
  4. 4
    Report: Chris Bosh agrees to 5-year, $118 million deal with Miami Heat
  5. 5
    College Board apologizes over 'racially insensitive' T-shirt
+ show more