Nat gas producers up on bullish forecast, Gustav woes
Tue Aug 26, 2008 3:29pm BST
NEW YORK, Aug 26 (Reuters) - Shares of natural gas producers rose on Tuesday on worries about Hurricane Gustav and after Bernstein Research said the outlook for natural gas prices is more favorable than the outlook for crude oil prices.
Comstock Resources (CRK.N: Quote, Profile, Research), EOG Resources (EOG.N: Quote, Profile, Research), Range Resources (RRC.N: Quote, Profile, Research), Exco Resources (XCO.N: Quote, Profile, Research) and Anadarko Petroleum (APC.N: Quote, Profile, Research) all posted strong gains in early trading, while U.S. natural gas futures also rose due to concerns that Hurricane Gustav could hurt offshore production in the Gulf of Mexico.
Bernstein analyst Ben Dell also raised his rating on EOG Resources to "outperform" from "marketperform," citing a growing optimism about natural gas prices and the company's strong balance sheet.
"Our differing outlook for the two commodities leads us to believe that the upside is skewed towards gas leveraged E&Ps (exploration and production companies)," Dell said in a note to clients.
Anadarko's shares were also boosted by a $5 billion share repurchase plan, which the company announced late on Monday.
Shares up Comstock rose 5.9 percent to $66.53, EOG rose 4.9 percent to $107.22, Range Resources rose 5 percent to $46.55, XCO rose 6.5 percent to $25.73 and Anadarko was up 6.2 percent at $61.40. (Reporting by Euan Rocha, editing by Dave Zimmerman)
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