Natural Gas Prices Surge to Historic Weekly Highs Amid Record Heating Demand
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
- Price Surge: Natural gas futures at Henry Hub surged past $5 per MMBtu, marking a roughly 60% weekly increase, the largest on record since 1990, indicating a tight market driven by soaring demand.
- Extreme Weather Impact: A rare cold wave is expected to hit 40 states, with heavy snow and ice raising the risk of energy system strain, increasing the likelihood of power outages and hazardous travel, thereby boosting natural gas demand.
- Production Risks Heightened: Goldman Sachs analysts highlight that production outages due to freeze-offs could coincide with peak heating demand, with disruptions estimated to reach 15 Bcf/d on January 26, potentially leading to temporary gas shortages.
- Inventory Risks Rising: As winter demand escalates, natural gas inventories may face depletion risks; Goldman estimates prices need to remain in the $3.50 to $4.00 per MMBtu range to curb power sector demand and incentivize additional supply.
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Analyst Views on AR
Wall Street analysts forecast AR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AR is 45.40 USD with a low forecast of 36.00 USD and a high forecast of 55.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
11 Buy
5 Hold
0 Sell
Moderate Buy
Current: 34.460
Low
36.00
Averages
45.40
High
55.00
Current: 34.460
Low
36.00
Averages
45.40
High
55.00
About AR
Antero Resources Corporation is an independent natural gas and natural gas liquids (NGLs) company. The Company is engaged in the acquisition, development and production of unconventional properties located in the Appalachian Basin in West Virginia and Ohio. The Company’s segments include the exploration, development and production of natural gas, NGLs and oil; marketing of excess firm transportation capacity, and midstream services through its equity method investment in Antero Midstream. The Company targets large, repeatable resource plays where horizontal drilling and advanced fracture stimulation technologies provide the means to economically develop and produce natural gas, NGLs and oil from unconventional formations. The Company holds approximately 521,000 net acres of natural gas, NGLs and oil properties located in the Appalachian Basin primarily in West Virginia and Ohio.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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