Natural gas prices could rocket higher this winter, and some producers could emerge from hibernation in much stronger shape.
Morgan Stanley analyst Mark Carlucci thinks
(EQT), the largest gas producer in the U.S., can do particularly well under those circumstances and he upgraded the shares to Overweight from Equal Weight in a note on Friday.
(SWN), another gas producer, is also improving, and Carlucci upgraded its shares to Equal Weight from Underweight.
Natural gas prices have been depressed for years because there’s simply too much of it. Natural gas is a byproduct of oil production, and a boom in oil drilling in the U.S. has also led to an increase in natural gas supplies. But oil drilling has declined amid the pandemic and is likely in for a longer slump given depressed prices. So natural gas