CHICAGO, Feb. 14, 2012 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Chesapeake Energy (NYSE: CHK), EnCana Corporation (NYSE: ECA), Nabors Industries (NYSE: NBR), Patterson-UTI Energy (Nasdaq: PTEN) and Halliburton Company (NYSE: HAL).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Monday's Analyst Blog:
Nat Gas Storage Surplus Widens
The U.S. Energy Department's weekly inventory release showed a lower-than-expected drop in natural gas supplies, as warmer-than-normal temperatures across the country have restricted the commodity's requirement for power burn. In fact, gas stocks – currently 33% above benchmark levels – are at their highest point for this time of the year, reflecting low demand amid robust onshore output.
The Weekly Natural Gas Storage Report – brought out by the Energy Information Administration (EIA) every Thursday since 2002 – includes updates on natural gas market prices, the latest storage level estimates, recent weather data and other market activities or events.
The report provides an overview of the level of reserves and their movements, thereby helping investors understand the demand/supply dynamics of natural gas.
It is an indicator of current gas prices and volatility that affect businesses of natural gas-weighted companies and related support plays like Chesapeake Energy (NYSE: CHK), EnCana Corporation (NYSE: ECA), Nabors Industries (NYSE: NBR), Patterson-UTI Energy (Nasdaq: PTEN) and Halliburton Company (NYSE: HAL).
Stockpiles held in underground storage in the lower 48 states fell by 78 billion cubic feet (Bcf) for the week ended February 3, 2012, below the guidance range (of 84–88 Bcf draw) as per the analysts surveyed by Platts.
The decrease – the eleventh consecutive withdrawal of the 2011-2012 winter heating season after stocks hit an all-time high in mid-November – is well below last year's draw of 206 Bcf and the 5-year (2007–2011) average drawdown of 191 Bcf for the reported week.
The current storage level – at 2.888 trillion cubic feet (Tcf) – is up 714 Bcf (32.8%) from both last year and the five-year average. With this sharply widening natural gas surplus, inventories in underground storage are likely to end the winter close to their highest level of 2.1 Tcf set in 1983.
A supply glut has pressured natural gas prices during the past year or so, as production from dense rock formations (shale) – through novel techniques of horizontal drilling and hydraulic fracturing – remain robust, thereby overwhelming demand. As a matter of fact, natural gas prices have dropped more than 50% from 2011 peak of about $5.00 per million Btu (MMBtu) in June to the current level of around $2.40 (referring to spot prices at the Henry Hub, the benchmark supply point in Louisiana).
To make matters worse, mild winter weather across most of the country has curbed natural gas demand for heating, indicating a grossly oversupplied market that continues to pressure commodity prices in the backdrop of sustained strong production.
This has forced players like Chesapeake Energy to announce volume curtailments. The Oklahoma-based firm – the second-largest U.S. producer of natural gas – declared last week that it had already slashed more than 500 million cubic feet per day of output and may eventually raise volume cutbacks to as much as 1 billion cubic feet per day if prices stay low.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com
SOURCE Zacks Investment Research, Inc.
Share this article