U.S. Natural Gas Prices Surge 20% to $3.70 Amid Cold Weather Forecasts
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
- Price Surge: U.S. natural gas futures surged nearly 20% on Monday to $3.70 per MMBtu, rebounding from a low of $3.10, marking the largest one-day gain since October 2024, reflecting strong market reactions to cold weather forecasts.
- Cold Wave Impact: An intensifying Arctic outbreak is expected to affect the central and eastern U.S., with the National Weather Service predicting lake-effect snow accumulations of 8-12 inches and temperatures 20 to 30 degrees below average, significantly boosting heating demand.
- Demand Spike: More than 200 million Americans are forecasted to experience below-freezing temperatures, with wind chills plunging to 20 to 30 degrees below zero in parts of Minnesota, which will greatly increase heating and electricity generation needs, potentially driving gas prices higher.
- Market Reaction: With Wall Street closed for Martin Luther King Jr. Day, natural gas-linked stocks such as EQT, Chesapeake, and Antero Resources may react positively when markets reopen, prompting investors to monitor these companies' stock price movements.
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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: 35.300
Low
36.00
Averages
45.40
High
55.00
Current: 35.300
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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