Natural gas is over $5 despite a real glut and weather that isn't generating a lot of use for the stuff. It's not supposed to happen, but it is propelling the most levered player, Chesapeake (CHK), to go higher. Southwest Energy (SWN), Range Resources (RRC) and Cabot Oil & Gas (COG) have all caught bids, too.

I’m expecting at least a 17% earnings surprise. They’re a horizontal driller down in Arkansas and the reason we have more nat gas then we know what to do with. But the price of nat gas is starting to rise.

Mainly a natural gas company, Southwestern Energy (SWN) has been challenged by massive supply and low prices. However, the company has responded by pushing production through the roof. In the latest quarter, output soared by 65%! That means even though the company is getting a lower price, it is still posting great sales.

SWN is a pioneer in horizontal drilling — meaning instead of erecting many rigs that drill down into a gas field, it simply taps a well once and then drills sideways to access the remainder of the field. This technology keeps costs down while boosting output. Even if gas prices stay very soft, this horizontal drilling tactic will allow Southwestern to increase sales simply by bringing even more natural gas to the market.

How long could we decide that the great companies like (XTO), Chesapeake Energy (CHK), Devon Energy (DVN), Southwestern Energy (SWN), Apache (APA), Anadarko (APC) and EQT (EQT) could be denied upside when the natural gas futures bottomed and took off? I look at this group, which I endlessly proselytize, and I wonder when people will realize that the price for next year is signaling a better year.

I felt better about the stock and the nat-gas story after the interview. It was a vital piece of the puzzle for those of us who own Anadarko (APC) or Apache (APA) or Chesapeake Energy (CHK) or Cabot Oil & Gas (COG) or Southwestern Energy (SWN) or, in my trust's case, Devon Energy (DVN). Much-needed reassurance after the moves these stocks have had in the face of the plummeting commodity.

It's my best appreciating stock

The implications for Southwestern Energy (SWN), Apache (APA), Anadarko Petroleum (APC), Chesapeake Energy (CHK), XTO Energy (XTO) and Devon Energy (DVN) are pretty clear. Without a mandate from Washington, these stocks will have to have a more realistic reflection of where natural gas is going. Today's decline is not enough to settle them, especially in light of storms that used to make them jump at least a little bit. The direction, of course, is lower.

Chesapeake (CPK) and Southwestern (SWN) are the other two I would buy as they too have the most exposure. The hoopla over Aubrey McClendon's pay package has died down and Southwestern was moving up nicely until oil tripped up at $72. All three could ramp here as this Dion trade takes place.

He liked such nat-gas plays as Anadarko (APC) and Southwestern (SWN) and called Chesapeake (CHK) "one of the better plays." The company is a "survivor," he said. He liked such nat-gas plays as Anadarko (APC) and Southwestern (SWN) and called Chesapeake (CHK) "one of the better plays." The company is a "survivor," he said. "Cramer's 'Stop Trading!': Nat Gas Is Cheap," 6-15-09

"You saw the natural gas stocks roll over viciously ahead of natural gas peaking, so you have to believe that today's rally in higher-quality players Southwestern (SWN) and Devon (DVN) -- plays on the Haynesworth shale; remember that? -- shows that nat gas is about to explode to the upside." ("Saftey Last," 6-1-09)

I find it very volatile!

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