By Sayer Devlin
“The collapse in the crude market is going to create a more constructive gas setting,” said Matthew Portillo, managing director of exploration and production research at Tudor, Pickering, Holt & Co. “Slowing U.S. growth is going to significantly affect associated gas production.”
U.S. gas producers still face obstacles to recovery, however. Prices for the heating and power-plant fuel are trading near four-year lows as output from shale basins continues to climb, albeit at a more measured pace. The coronavirus outbreak has sapped global gas demand, prompting buyers to refuse U.S. cargoes of the fuel and stoking concern that American exports will slow.
Cabot rose as much as 11% to $16.59 a share. EQT jumped 9.1%, while Southwestern was up 7.9% and Range gained 4.6%.