Range Resources Corp. (RRC), Chesapeake Energy Corporation (CHK), EQT Corporation (EQT): Five Stocks Fueled by the Booming Marcellus

Cabot Oil & Gas Corporation (NYSE:COG)
With a more than a 25-year drilling inventory in the Marcellus, Cabot Oil & Gas Corporation (NYSE:COG) likewise has a very visible growth runway. Even better, with its super-low-cost basis, and prime position in the play, its rate of return rivals or exceeds all of the top liquids plays in the U.S. at current commodity prices. Which is truly stunning to think about. In fact, its returns are so good that it recently doubled its dividend and it sees significant free cash flow next year which it could use to either accelerate its drilling program or further reward its investors.

CONSOL Energy Inc. (NYSE:CNX)
Coal producer CONSOL Energy Inc. (NYSE:CNX) also has a thriving natural gas business, which is fueled by the growth in the Marcellus. It is the growth potential in gas that has CONSOL Energy Inc. (NYSE:CNX) shifting its coal business away from growth mode and into harvest mode so that it can turn its full attention on gas. Overall, it’s planning to grow its gas production by 22%-30% over the next year. If there is one problem, it is that the market still isn’t seeing the growth potential of its gas business, which is why the company is considering its strategic options so the market will give it credit for all this growth.

Final Foolish thoughts
The Marcellus continues to develop into a real gem for natural gas producers. Even at current natural gas prices these producers are earning fantastic returns which really bodes well if gas prices rise in the future. Best of all, the play has the potential to reduce our need for foreign oil imports.

The article 5 Stocks Fueled by the Booming Marcellus originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool recommends Range Resources. The Motley Fool has the following options: long January 2014 $30 calls on Chesapeake Energy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.