Winter Storm Fern is anticipated to have a significant impact on energy and power production, leading to potential stock fluctuations in the energy sector. Here are the stocks and industry groups to keep an eye on during this and future storms.
Natural Gas Producers, Equipment Manufacturers In Focus
The recent surge in natural gas prices, coupled with potential production disruptions, has put natural gas producers in the spotlight amid the ongoing winter storm. Companies like Antero Resources Corp. (NYSE:AR), EOG Resources Inc. (NYSE:EOG), Expand Energy Corp. (NYSE:EXE), and Coterra Energy Inc. (NYSE:CTRA) are expected to see significant upside, reported CNBC, citing FactSet data, which analysts see as the greatest upside among these producers.
The freezing of natural gas equipment and pipelines, which rely on electrical power, could lead to a halt in pipeline activity. This could impact companies like Energy Transfer (NYSE:ET), OneOK Inc. (NYSE:OKE), Kinder Morgan Inc. (NYSE:KMI), Enterprise Products Partners (NYSE:EPD), and Williams Cos. Inc. (NYSE:WMB).
The storm’s heavy snow, freezing rain, and ice could potentially cause prolonged power outages for millions of homes. Exelon Corp. (NYSE:EXC), which operates in areas expected to be hit hard by the storm, is also a stock to watch.
Winter Storm Fern Disrupts US Travel and Power
The ongoing winter storm, Fern, has already caused widespread disruptions across the U.S., affecting various sectors, including energy production and power markets. The storm is forecast to bring heavy snow, sleet, and freezing rain, significantly impacting the Southern Plains, Lower Mississippi Valley, Tennessee Valley, Southeast, and parts of the Northeast.
The storm has also led to the cancellation of thousands of flights, affecting travelers nationwide. Airlines such as Delta Air Lines (NYSE:DAL), JetBlue Airways Corp. (NASDAQ:JBLU), and United Airlines Holdings Inc. (NASDAQ:UAL) have preemptively canceled flights, with more than 9,400 flights for Sunday also canceled.
Meanwhile, PJM, the largest U.S. power grid, warned of a potential winter peak on January 27 and is coordinating with generators and transmission owners. Utilities CenterPoint Energy Inc. (NYSE:CNP) and Duke Energy Corp. (NYSE:DUK) announced preparation plans to ensure a reliable power supply.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: T. Schneider / Shutterstock.com
