Bloomberg News

Cabot, Southwestern Fall as Gas Declines to 28-Month Low

January 12, 2012

(Updates with closing share price in second paragraph.)

Jan. 11 (Bloomberg) -- Cabot Oil & Gas Corp., 2011’s best- performing stock in the Standard & Poor’s 500 index, led declines by natural-gas producers today as price for the heating fuel fell to a 28-month low on a mild weather forecast.

Cabot, based in Houston, fell 11 percent to $69.62 at the close in New York, today’s worst performance by an S&P 500 energy stock. Southwestern Energy Co., Range Resources Corp. and QEP Resources Inc., which also produce more gas than oil, fell more than 5 percent.

The National Weather Service forecast above-normal temperatures from the Rocky Mountains to the East Coast Jan. 18 through Jan. 24.

Natural gas for February delivery fell 16.7 cents to $2.774 per million British thermal units on the New York Mercantile Exchange, the lowest settlement price since Sept. 4, 2009. Today’s decline was the largest daily drop since May 5.

Cabot shares doubled in 2011 to $75.90 as output rose. Production from the Marcellus Shale, a gas-rich deposit near U.S. East Coast markets, more than doubled to 600 million cubic feet a day before royalties during the final two days of 2011.

Crude oil for February delivery declined $1.37 to settle at $100.87 on the New York Mercantile Exchange. Prices are up 11 percent from a year earlier.

--With assistance from Naureen S. Malik in New York. Editors: Charles Siler, Jessica Resnick-Ault

To contact the reporter on this story: Jim Polson in New York at jpolson@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net


Later, Baby
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus