Shares of
Chesapeake Energy
and
EQT
took off on Wednesday as natural-gas prices were having their largest one-day percentage gain in two years.
Front-month Nymex natural gas for March delivery gained 11% to $1.76 per million British thermal units on Wednesday. That is the largest one day percentage gain since Oct. 31, 2022, according to Dow Jones Market Data.
The jump in natural-gas prices comes as
Chesapeake Energy
said on its fourth-quarter earnings call Wednesday that it is reducing production.
“We see that the market is oversupplied right now. Capex reductions that we and anybody else in the industry take on have an impact to production several months out as long as 12 months out,” management said on the earnings call. “We believe the right answer is to reduce production today.”
Shares of Chesapeake Energy were up 7.6% to $83.51, on pace for their largest percentage increase since June 24, 2022.
Shares of
EQT,
another natural gas company, were up 12% to $37.64. The stock was the top performer in the
S&P 500
on Wednesday, while the index declined 0.4%.
Permian Resources
was up 1.7%,
Devon Energy
rose 1.8%, and
ConocoPhillips
was up 3.1%.
Write to Angela Palumbo at [email protected]
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