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Utica: Drillers take hits from stock prices

Thanks to low commodity prices, drillers and investors in the oil and gas industry have taken several negative hits, and those hits are certainly visible when it comes to drillers in the Utica Shale formation.

On Friday during a second-quarter earnings call, Magnum Hunter Resources Corp. CEO Gary Evans explained that there is a dramatic prices difference in oil and gas when compared to last year.  At the beginning of November last year, oil as was priced around $80 per barrel, and now it is nearly half that.  Natural gas has dropped almost a full dollar, sitting at $3.71 per million BTU’s last November to $2.81 per million BTU’s.  Evans stated the following:

Those of us in the energy sector are dealing with much lower commodity prices throughout our business that is causing all of us to change our business plans.

While it seems risky, some analysts are actually encouraging investors to take calculate gambles and invest in stock while prices are so low. According to the Columbus Business First, many have hope that the price of natural gas will rebound due to overseas export opportunities, along with “more use for electricity generation to make up for lost coal-based production.”

The Columbus Business First took a closer look at commodity prices and how stock prices are impacting companies operating Ohio.  “The numbers are stark: The top 5 public companies, based on 2014 drilling permits, recorded price highs in August and September 2014, a few months before oil and gas prices fell. Each company’s low has fallen in July and August 2015.”  The rankings are as followed:

Chesapeake Energy Corp.

2014 permits: 187

Headquarters: Oklahoma City

52-week low/high: $6.85 (Aug. 5, 2015) – $27.24 (Aug. 29, 2014)

Gulfport Energy Corp.

2014 permits: 106

Headquarters: Oklahoma City

52-week low/high: $31.57 (July 28, 2015) – $59.28 (Sept. 16, 2014)

Eclipse Resources Corp.

2014 permits: 92

Headquarters: State College, Pennsylvania

52-week low/high: $3.59 (Aug. 4, 2015) – $21.45 (Aug. 12, 2014)

Antero Resources Corp.

2014 permits: 95

Headquarters: Denver

52-week low/high: $25.09 (Aug. 6, 2015) – $58.63 (Sept. 18, 2014)

Hess Corp.

2014 permits: 35

Headquarters: Houston

52-week low/high: $54.65 (Aug. 6, 2015) – $101.96 (Sept. 3, 2014)

American Energy Utica LLC

Held the second-most permits in 2014 but is not publicly traded.

2014 permits: 116

Headquarters: Oklahoma City

52-week low/high: N/A

The shown data is credited to Yahoo Finance.

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