Shares of Chesapeake Energy Corp., the second- largest U.S. natural gas producer, rose the most in more than two months as frigid temperatures in some of the largest American cities was expected to increase demand for the fuel.
Chesapeake, based in Oklahoma City, gained 5.1 percent to $18.73 at the close in New York, the most since Nov. 19.
Below-normal temperatures are expected to persist all week in New York, Boston, Philadelphia and Chicago, according to weather data compiled by Bloomberg. Gas for February delivery fell 0.2 percent at the close to $3.558 per million British thermal units on the New York Mercantile Exchange after reaching $3.645, the highest intraday price since Dec. 7.
Read more: Natural gas prices fall amid warmer weather
“The cold snap is favorable for gas demand,” Tim Rezvan, an analyst at Sterne Agee & Leach Inc. in New York who has a neutral rating on Chesapeake’s stock, said in a phone interview today.
Exxon Mobil Corp (XOM) is the biggest U.S. gas producer, according to the Natural Gas Supply Association.