HOUSTON (Bloomberg) — Shares of Nabors Industries Ltd., the world’s largest onshore drilling contractor, jumped to a three-month high on Wednesday, rising with other US-based energy service companies as natural gas prices rallied.Nabors shares rose $1.23, or 3.8 percent, to $33.86 in New York Stock Exchange composite trading, the highest price since August 25. The Philadelphia Oil Service Sector Index, which includes Nabors, Schlumberger Ltd. and other oilfield service providers, surged four percent to its highest level since July.

Nabors’ shares edged down ten cents to $33.76 yesterday.

Gas futures in New York reached a 10-month high on Wednesday on colder forecasts, and have more than doubled from four-year lows in September. That’s reduced the prospect for weaker drilling rig demand next year as energy producers curtail oil and gas exploration.

“There was a fear for some time that U.S. natural gas drilling activity, both onshore and in the Gulf of Mexico, would have a slowdown if there was a warm winter,” said Stewart Glickman, an equity analyst at Standard & Poor’s in New York.

Nabors, based in Bermuda, and run from offices in Houston, owns about 588 land-based drilling rigs. The company’s shares, up 22 percent from a 16-month low of $27.69 on October 3, are still down 11 percent this year.

Among other drillers, Houston-based Rowan Cos. surged $1.90, or 5.6 percent, to $36.03 on Wednesday..

Transocean Inc., also based in Houston, rose $3.03, or 4 percent, to $78.51.

Gas futures soared as a mass of arctic air sent temperatures plunging across the western U.S., increasing demand for the furnace fuel.

The air mass is moving eastward across the US and is expected to reach the East Coast by early next week.

Gas for January delivery rose 31.2 cents, or 3.7 percent, to $8.871 per million British thermal units on the New York Mercantile Exchange, the highest closing price since Jan. 31. The futures on Sept. 27 touched $4.05, the lowest for a contract closest to expiration since November 2002.

Speculation over a possible leveraged buyout helped boost Nabors’ stock price earlier this month. In a leveraged buyout, or LBO, the buyer borrows money to pay for the purchase, typically using the target company’s cash flow to pay back the loans.

Nabors spokesman Dennis Smith said on November 20 there was “no substance” to the speculation.

Smith didn’t respond to a phone message on Wednesday.