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With natural gas prices declining, a few major energy companies make up our 52-week low stocks today. Here’s why these companies are at a low price point:
Chesapeake Energy (NYSE:CHK): While natural gas prices are bad for the producers, low prices are a boon for other industries, According to James Roemer, low prices are reversing outsourcing behavior of 5-8 years ago. CF Industries (NYSE:CF) notes costs for natural gas declined from $6 million to $2 million looks to expand U.S. plants to the tune of $1 billion. Shares closed at $20.81, down $0.6 or 2.8 percent. Their 52-week trading range has been $21.35 to $35.95.
Kinross Gold Corp. (NYSE:KGC): Kinross Gold picks its way after announcing only a slight 2012 production increase. A slight bump in from 2.6 million ounces in 2011 to a predicted 2.6 million – 2.8 million ounces in 2012. Not much consider costs to gold production costs are rising from around $600 per ounce to $670-$715 an ounce. Capital expenditures for 2012 were forecast to be about $2.5 billion. Shares closed at $10.27, down $2.38, or 18.81 percent. Their 52-week trading range has been $10.80 to $18.25.
Quicksilver Resource (NYSE:KWK): Continuing decline in natural gas prices are reeling in prices for electricity, prompting alternative projects to be put on hold by NextEra (NYSE:NEE), Exelon (NYSE:EXC), and CMS. Could we be counting on gas too much? Michael Morris of American Electric Power (NYSE:AEP) warns “The way to make $4 gas, $8 gas is for everyone to go out and build … natural-gas plants.” Shares closed at $5.52, down $0.27 or 4.66 percent. Their 52-week trading range has been $5.69 to $15.98.
NRG Energy (NYSE:NRG): More fallout from declining natural gas prices as shares of NRG Energy closed at $17.24, down $0.45 or 2.54 percent. Their 52-week trading range has been $17.31 to $25.66.
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To contact the reporter on this story: Jim Wilkerson at staff.writers@wallstcheatsheet.com
To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com
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