Wow. Well, as a land owner and a stockholder in EQT, this story holds both positive and negative aspects that I'm not sure how to comment other than, I guess we'll see. As a former Rice Energy landowner, I hold a lot of confidence in the intelligence, ingenuity, and business savvy of Toby Rice and his team, being with them as the company grew from a few wells to the massive public company that merged with EQT. As such, I am well aware of what the Rice group is capable of and, despite huge losses in royalties and revenues ourselves due to the loss in sales and stock value, have not lost hope or confidence in the company rebounding under Rice mgt. I will admit to some amount of trepidation - who wouldn't have in the current situation - but am optimistic that Toby and team will pull the rabbit out of the hat and raise the company out of its slump.
Even as natural gas futures (NYSEARCA:UNG) are lower, stocks of natural gas drillers are far outperforming oil-focused names, as on plunging crude prices force Permian Basin oil producers to pull back and ease the massive glut.
"The collapse in the crude market is going to create a more constructive gas setting," says Tudor Pickering Holt managing director of E&P research Matthew Portillo. "Slowing U.S. growth is going to significantly affect associated gas production."
April Nymex nat gas futures -1.2% to $1.688/MMBtu.
Other gas-focused gainers include Southwestern Energy (SWN +20.2%), Range Resources (RRC +6.3%), EQT Corp. (EQT +18.9%), Antero Resources (AR +6.5%), Gulfport Energy (GPOR +18%) and Comstock Resources (CRK +1.4%).
However, Chesapeake Energy (CHK -10.4%) sank to a new all-time low before bouncing back a bit.