Tuesday, July 13, 2010

Citigroup (NYSE:C) Comments on Natural Gas Sector

With the natural gas sector under huge pressure because of extraordinary supply, prices continue to be under downward pressure from the abundance of the energy. Citigroup (NYSE:C) commented on their view of the sector and who they like within it.

“We are updating estimates to reflect actual Q2 natural gas and crude oil prices along with other fine tuning to our models. Our average FY 2010 natural gas price forecast rises back to $4.75/MMBtu (vs. $4.60 previously) and our FY2010 WTI spot oil price forecast is now $81/Bbl (vs. $82 previously). Versus consensus, APA and NBL are expected to beat estimates while Canadian Natural Resource (NYSE:CNQ), EOG Resources (NYSE: EOG) and Nexen (NYSE:NXY), in particular, are projected to miss,” said the Citigroup analysts.

“Our top sector picks are Anadarko Petroleum (NYSE:APC), Apache (NYSE:APA), CNQ and EOG,” they added.

Rumors Apache may be ready to acquire BP (NYSE:BP) assets in Alaska have the stocks moving up.

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