With natural gas prices falling off a cliff the last 12 months, it's become significantly cheaper compared to oil on a relative basis.
Investors with a long-term investment horizon are eagerly eyeing the spread between oil and natural gas prices with a mind to profit. The energy sector is full of long-shot big-payout stocks like Kodiak Oil & Gas and more natural-gas-focused EXCO Resources, but Austin likes low-cost Ultra Petroleum over all of them. Ultra's low-cost structure ensures an earlier break-even point than other companies in this space, and its Marcellus shale position continues to push production higher. It's a high-quality natural gas stock that should play out for years to come as price parity with oil returns.
There are many other ways to play this space as well. Our analysts have uncovered an under-the-radar company that's dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations, and is poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out our special free report: "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.
At the time thisarticle was published Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Ultra Petroleum and has the following options: long JAN 2013 $16.00 calls on Chesapeake Energy, long JAN 2013 $25.00 calls on Chesapeake Energy, long JAN 2014 $20.00 calls on Chesapeake Energy, long JAN 2014 $30.00 calls on Chesapeake Energy, long JAN 2014 $30.00 calls on Ultra Petroleum, long JAN 2014 $40.00 calls on Ultra Petroleum, and long JAN 2014 $50.00 calls on Ultra Petroleum. Motley Fool newsletter services recommend ATP Oil & Gas and Ultra Petroleum. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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