The recent dive in prices of natural gas has caused many producers' stocks to come under pressure. Investors who are bearish natural gas may be using companies like Chesapeake (CHK) and Southwestern Energy (SWN) to short the gas market. One should use caution when doing this, as many of these producers have already undergone enormous haircuts and are able to hedge gas prices and mitigate losses via other resource production. However, there are still pure play natural gas stocks that have not fully priced in the recent drop in the commodity. One in particular is San Juan Royalty Trust (SJT).
SJT has a 75% net overriding royalty interest carved out of Burlington Resources Oil & Gas Company LPs oil and gas leasehold, and royalty interests located in the San Juan Basin in northwestern New Mexico. Burlington Resources Oil & Gas Company LP (a subsidiary of Conoco Phillips, COP) operates the
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