Natural Gas Stocks Were on Fire This Week

With the price of crude oil seeming to find a bottom earlier this week, it sent energy stocks off to the races.

However, natural gas stocks, in particular, were strong this week with five of the top movers, according to S&P Capital IQ data, being gas drillers Gulfport

Energy (NASDAQ: GPOR), Range Resources (NYSE: RRC), Cabot Oil & Gas (NYSE: COG), Southwestern

Energy (NYSE: SWN), and Eclipse Resources (NYSE: ECR).

What:Gulfport Energy (NASDAQ: GPOR) rebounded more than 10% this week.

So What: Key driver: Investors flocked

to natural gas drillers Investors started to see

natural gas drillers as a safe haven trade

It also didn’t hurt that cold weather finally set in, with a huge winter storm bearing down on the East Coast

Now What: Analysts also are starting to

see the potential for a second half ease in the natural gas supply glut, which could push gas prices higher

Key takeaway: Investors are just trying to find a way to make money on energy stocks

What:Range Resources (NYSE: RRC) popped 14% this week.

So What: Key driver: The natural

gas stock rally Like Gulfport Energy,

Range Resources rallied along with the natural gas drilling sector after investors turned bullish

Now What: Investors are also starting

to realize that most gas drillers don’t produce much, if any, oil

Key takeaway: Investors are buying gas drillers in hopes of catching a big rally later this year

What:Cabot Oil & Gas (NYSE: COG) jumped 17% this week.

So What: Key driver: Same story,

different name Like the rest of its gas

drilling peers, Cabot Oil & Gas surged this week after investors changed their mind on the sector

Now What: One thing investors like

about gas stocks is the fact that they’ve already reduced their costs significantly

Key takeaway: Investors are focusing on the positives for once, instead of the negatives

What:Southwestern Energy (NYSE: SWN) surged more than 30% this week.

So What: Key driver: Layoffs Southwestern Energy

disclosed that it will lay off 1,100 of its employees, or about 40% of its workforce

This move will save the company up to $175 million per year

Now What: One of the big reasons why

Southwestern is laying off so many workers is because it currently isn’t running any drilling rigs

Key takeaway: Investors see this not only as a sign that the company is growing more financially disciplined, but that natural gas supply growth could be very muted, which is bullish for its price

What:Eclipse Resources (NYSE: DNR) jumped more than 37% this week.

So What: Key driver: The natural gas

stock rally In addition to moving with

the sector, Eclipse Resources also unveiled that it expects to take an impairment charge of up to $850 million in the fourth quarter

Now What: Investors shrugged off that news,

and instead are focused on the fact that the company is only aiming to keep its production flat this year, which when combined with the moves its peers are making, should lead to improved natural gas prices later this year

Key takeaway: Investors see signs on the horizon that the natural gas market is going back into balance.

This could be the next billion-dollar iSecret