Some of the largest natural gas stocks are Exxon Mobil, Chesapeake Energy, Anadarko, Devon Energy and ConocoPhillips, states ProPublica. While there are over 14,000 natural gas companies in the United States, the largest companies perform about one-third of the drilling.
You can buy natural gas stocks from various publicly traded natural gas companies through any stock exchange. Apart from buying natural gas stocks, you can also invest in natural gas exchange-traded funds and natural gas futures, states CommodityHQ.com.
Chesapeake Energy, Range Resources and Southwestern Energy are natural gas companies offering stocks trading under the symbols CHK, RRC and SWN respectively, as of 2015, notes Forbes. Each of the companies is based in the United States and trades on the New York Stock Exchange.
Natural gas is priced in accordance with the market supply and demand factors. The three most important factors that affect the price include the amount of gas being purchased, the transportation cost and the amount of processing required to prepare the gas according to the buyer’s needs.
The average price for natural gas fluctuates quite a bit from state to state, with the states on the East Coast normally paying quite a bit more than most others. In general, states that either produce large quantities of natural gas or are served by major gas pipelines, such as Utah, Alaska, Colora
The current market price of natural gas can be found on Nasdaq.com. The website provides a graph showing prices changes for a time frame of three months. As of October 19, 2015, the end of day price quote for natural gas is 2.442.
The primary driver of natural gas prices is a spike in demand when available supplies are low. For instance, natural gas use peaks over the winter due to its use as a heating fuel. Weather and refining capacity problems can also lead to short-term increases in natural gas prices.
Several factors impact what constitutes a high-performing gas stock, but some of the common funds include the First Trust ISE Revere Natural Gas ETF, the Alerian Energy Infrastructure ETF and the United States Natural Gas Fund, LP, notes The Motley Fool. These funds all trade under different ticker
Futures prices for natural gas vary from day to day and are also based on the delivery date of the contract. Natural gas futures trade at the New York Mercantile Exchange. Futures prices listed on indexes and real time quotes use the unit dollars per million British thermal units.
The laws of supply and demand affect the price of natural gas. There are few available short-term alternatives to the product for purposes such as heating and the generation of electricity. Accordingly, when the supply of natural gas goes down, the demand increases, forcing prices to rise.