EQT Corporation (EQT), Range Resources Corp. (RRC): 3 Low Cost Natural Gas Producers Poised to Benefit From Higher Gas Prices

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At a recent conference, Ultra outlined its vision for the upcoming year. They are going conservative. While the Marcellus play looks profitable even with low gas prices, the company plans to further reduce operating expenses and stay within its cash flow regarding drilling activity and other investments. The company was cash flow positive in the last two quarters of 2012 and management seems to want to keep it that way.


Final Foolish Thoughts

After years of decline, natural gas prices are rebounding. Certainly, an increase in natural gas consumption by electric utilities and consumers over a colder winter contributed. Increased natural gas production should be boosted by efforts to expand natural gas as a vehicle fuel, although progress will likely be slow. Of the three companies presented here, EQT seems best positioned to exploit the rise in gas prices. Not only have they eliminated their debt coming due in the next two years, they have the advantage of midstream operations contributing to their bottom line. The stock isn’t cheap, but overall I think they enjoy an advantage over Range Resources Corp. (NYSE:RRC) and Ultra.

The article 3 Low Cost Natural Gas Producers Poised to Benefit From Higher Gas Prices originally appeared on Fool.com and is written by Robert Zimmerman.

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