Market Overview

Bill Barrett Boosts Natural Gas ETF

Broadly speaking, energy ETFs are holding up relatively Friday despite a disappointing March jobs report and one equity-base fund is standing tall above the others.

The First Trust ISE-Revere Natural Gas Index Fund (NYSE: FCG) is higher by 2.1 percent on volume that is already well above the daily average.

FCG, which has $396.7 million in assets under management, got a lift after Goldman Sachs upgraded Bill Barrett (NYSE: BBG) to Buy from Neutral. Colorado-based Bill Barrett is an independent oil and natural gas producer and is FCG's third-largest holding with a weight of 3.93 percent.

News of Goldman's Bill Barrett upgrade is also benefiting rivals Cabot Oil and Gas (NYSE: COG) and Southwestern Energy (NYSE: SWN), which are up three percent and 2.5 percent, respectively. Cabot and Southwestern combine for 7.9 percent of FCG's weight.

Quicksilver Resources (NYSE: KWK), FCG's largest holding with an allocation of 4.4 percent, is up five percent today. Ultra Petroleum (NYSE: UPL), FCG's fourth-largest holding, is getting in on the fun as well with a pop of six percent.

It can be said traders are focusing more on the Goldman upgrade to Bill Barrett to other news that could potentially move FCG and its constituents. Earlier today, oil services firm Baker Hughes (NYSE: BHI) said the global rig count fell in March to 3,488 from 3,679 in February.

Baker Hughes said 3,119 land rigs were operated in March, down from 3,301 in February and below 3,317 last year, according to Dow Jones.

Most FCG holdings have significant exposure to land rigs through their footprints in various North American shale plays, implying that a dwindling rig count will mean less natural gas supply, which could benefit these stocks going forward.

For more on ETFs, click here.

Posted-In: Long Ideas News Sector ETFs Short Ideas Futures Commodities Hot Intraday Update Markets Trading Ideas ETFs Best of Benzinga

 

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