1 Way to Play Natural Gas

Natural gas has rebounded since briefly falling below $2 earlier this year. We were in a crisis of sorts, as there was so much production that the trajectory of injections into storage suggested we might hit storage capacity. Months later, we've seen below-average injections for a while as rig counts have come down substantially. Assuming we experience an average winter, we should trek back toward $4 natural gas.

One of the stocks to play during a continuing natural gas rebound is Southwestern Energy. It's a low-cost producer with a good balance sheet, returns-focused management, pretty decent hedges in 2013, and several oil plays, any of which would transform the company's production mix meaningfully. Watch the video for Paul and Matt's full discussion.

With the swelling of the global middle class energy consumption will skyrocket over the next few decades, and long-term investors know that you want exposure to this space now. We've picked one incredible natural gas company that presents a rare "double-play" investment opportunity today. We're calling it "The One Energy Stock You Must Own Before 2014," and you can uncover it today, totally free, in our premium research report. Click here to read more

 

Matthew Argersinger has the following options: short JAN 2013 $35 puts on Southwestern Energy. Paul Chi has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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