Reuters is reporting:
U.S. natural gas drillers are emerging as an unlikely bright spot in this week’s collapse of energy stocks.
Shale gas producer Southwestern Energy Co. was among leaders in the S&P 500 Index a second day as energy investors flocked to producers of the power plant fuel in the face of sliding oil prices. It led the index Wednesday and was among the top five performers Thursday.
Range Resources Corp., EQT Corp. and Cabot Oil & Gas Corp. were also up.
Gas-focused drillers are quickly emerging as a safe haven for investors wary of getting burned by the drop in oil prices, offering a reprieve to a group of companies that have been hammered by low natural gas prices.From SeekingAlpha:
Southwestern said Thursday it’s slashing 45 percent of its workforce as new drilling slows.
Natural gas-heavy drillers are already lean after two straight years of price declines, giving them a leg up on oil- focused producers now taking measures to stem a supply glut, Chandra said. That may sow the seeds of a recovery to begin in the second-half of the year as supply and demand start to balance.
- Both OKE and OKS maintain their dividends/distributions.
- This is inline with the previously announced 2016 guidance.
- At current prices, OKE yields ~11%, while OKS yields ~12.5%.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.