Higher Natural Gas Prices Could Hurt These Stocks
With natural gas prices jumping over $4.40/btu, not all stocks will benefit from the gains. The first two articles focused on the two sectors that will benefit from higher prices: oil services and exploration stocks. On the flip side are the manufacturers and companies building transformational products to benefit from lower natural gas prices. These firms include Clean Energy Fuels (NASDAQ: CLNE ), Cheniere Energy (NYSEMKT: LNG ), and Westport Innovations (NASDAQ: WPRT ).
The problem these stocks face is that the products being built are taking until 2014, 2015, or even beyond to reach customers. Will natural gas prices remain low until then for these stocks to take advantage of these extremely low prices? The latest EIA inventory report for the period ending Dec. 12 showed a substantial decline of 285 Bcf, bringing the inventory levels to over 7% below the five-year average.
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