This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at email@example.com or call 800-767-3771 ext. 9339.
For Immediate Release
Chicago, IL – July 17, 2012 – 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 ( CHK - Analyst Report ) , Encana Corporation ( ECA - Analyst Report ) , Nabors Industries ( NBR - Analyst Report ) , Patterson-UTI Energy ( PTEN - Analyst Report ) and Halliburton Company ( HAL - Analyst Report ) .
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 Narrows
The U.S. Energy Department's weekly inventory release showed a larger-than-expected increase in natural gas supplies, reflecting the commodity’s tepid demand. However, the build came in well short of the five-year average addition for the week.
Despite the relatively soft supply build, the latest injection – the seventeenth in 2012 – has added to already bloated inventories. Gas stocks – currently some 20% above the benchmark levels – are at their highest point for this time of the year, reflecting low demand amid robust onshore output. This has constantly pressured spot prices that slipped to a 10-year low in April.
While natural gas inventories are no doubt still at elevated levels, injections since late April have been significantly lower than the average for this time, cutting the surplus relative to last year and the five-year average.
About the Weekly Natural Gas Storage Report
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 ( CHK - Analyst Report ) , Encana Corporation ( ECA - Analyst Report ) , Nabors Industries ( NBR - Analyst Report ) , Patterson-UTI Energy ( PTEN - Analyst Report ) and Halliburton Company ( HAL - Analyst Report ) .
Analysis of the Data
Stockpiles held in underground storage in the lower 48 states rose by 33 billion cubic feet (Bcf) for the week ended July 6, 2012, above the guidance range (of 24–28 Bcf gain) as per the analysts surveyed by Platts.
However, the increase was lower than both last year’s build of 87 Bcf and the 5-year (2007–2011) average addition of 90 Bcf for the reported week, thereby trimming the surplus relative to the benchmarks.
But in spite of the ‘below-average’ build during the past week, the current storage level – at 3.135 trillion cubic feet (Tcf) – is still up 548 Bcf (21.2%) from last year and 516 Bcf (19.7%) over the five-year average.
Due to this huge natural gas surplus, inventories in underground storage started to climb since March – weeks earlier than the usual summer stock-building season of April through October. They have persistently exceeded the five-year average since late September last year and are likely to test the nation’s underground storage facilities by fall. In fact, the EIA foresees natural gas storage at record highs of over 4.0 Tcf by October end.
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.
To make matters worse, near-record mild winter weather across most of the country curbed natural gas demand for heating, leading to an early beginning for the stock-building season. The grossly oversupplied market continues to pressure commodity prices in the backdrop of sustained strong production.
This prompted natural gas prices to drop approximately 63% from 2011 peak of $4.92 per million Btu (MMBtu) in June to a 10-year low of $1.82 during late April 2012 (referring to spot prices at the Henry Hub, the benchmark supply point in Louisiana).
However, in the recent past (since the week ended April 27, to be precise), repeated smaller-than-average storage builds have rallied back prices to around $2.85 per MMBtu. This can be attributed to strong demand by the utilities, as beaten down prices of natural gas have convinced them to switch to the commodity from the more costly coal.
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
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.
Zacks Investment Research
800-767-3771 ext. 9339
Please login to Zacks.com or register to post a comment.