Tudor Pickering upgraded SM Energy (NYSE: SM) to a “Buy” rating, following its press release concerning the "divestiture and development of a material portion of its Eagle Ford shale position."
SM Energy also said it has entered into an amended five-year senior secured revolving credit facility, resulting in boosting the borrowing base of the company from $1.0 billion to $1.3 billion
Tony Best, President and CEO, said, “We are pleased that we have reached this phase of our Eagle Ford marketing effort. Our oft-stated goal is to create value for our stockholders and we believe that a meaningful sell-down of our Eagle Ford position, when completed, will further enhance our ability to achieve that goal. The non-core asset sale and amended credit facility that we are announcing today further strengthen our already strong liquidity position and balance sheet. Our robust inventory of high-return projects and solid financial standing are a winning combination that will benefit our stockholders for years to come.”
Natural gas futures settled Thursday at $4.794 a million British thermal units on the New York Mercantile Exchange, climbing 16.5 cents, or 3.6 percent.
SM Energy Company participates in the acquisition, exploration, development, and production of natural gas and crude oil in North America.
SM Energy closed Thursday at $68.76, rising $1.02, or 1.51 percent.
Showing posts with label Natural Gas Futures. Show all posts
Showing posts with label Natural Gas Futures. Show all posts
Friday, June 3, 2011
Wednesday, June 9, 2010
Natural Gas Prices Drop on Change in Weather Forecast
Previous forecasts of unseasonably hot weather are no longer in the picture, and consequently natural gas futures fell for the first time in five days in response to the new forecast of cooler weather than originally expected.
That will reduce expected natural gas demand for electricity it powers, especially in the Northeast and Midwest.
The revision in the weather forecast calls for weather to be a minimum normal levels, with a good chance of dropping below normal temperatures.
Natural gas prices had soared 16 percent on the previous forecasts of much hotter weather.
July delivery of natural gas dropped 2.2 percent or 10.8 cents to $4.808 per million British thermal units on the New York Mercantile Exchange.
Even with supply outpacing demand for natural gas, prices since last year have increased by 29 percent, but most don't believe that is sustainable with so much natural gas available in the United States.
Natural gas production in the U.S. for 2010 was upwardly revised by the Energy Department’s Short-Term Energy Outlook by 0.8 percent to 61.22 billion cubic feet a day, up from the previous 60.75 projections in May.
That will reduce expected natural gas demand for electricity it powers, especially in the Northeast and Midwest.
The revision in the weather forecast calls for weather to be a minimum normal levels, with a good chance of dropping below normal temperatures.
Natural gas prices had soared 16 percent on the previous forecasts of much hotter weather.
July delivery of natural gas dropped 2.2 percent or 10.8 cents to $4.808 per million British thermal units on the New York Mercantile Exchange.
Even with supply outpacing demand for natural gas, prices since last year have increased by 29 percent, but most don't believe that is sustainable with so much natural gas available in the United States.
Natural gas production in the U.S. for 2010 was upwardly revised by the Energy Department’s Short-Term Energy Outlook by 0.8 percent to 61.22 billion cubic feet a day, up from the previous 60.75 projections in May.
Friday, June 4, 2010
US Natural Gas Fund (NYSE:UNG) Soaring
The supply of natural gas in relationship to demand has put downward pressure on heavily exposed natural gas companies and natural gas ETFs like US Natural Gas Fund (NYSE:UNG).
That has changed over the last couple of weeks, as the US Natural Gas Fund has surged by over 12 percent during that time.
It has been March since UNG has traded at current price levels.
With nothing much in the supply equation changing, other than the evil attempt by some Democrats to limit access to the natural gas resources in the Marcellus Shale, it's probably backwardation at this time which has been driving the price of UNG recently.
Backwardation refers to the time future gas prices drop below expected future spot gas prices. That favors an ETF fund like UNG.
That has changed over the last couple of weeks, as the US Natural Gas Fund has surged by over 12 percent during that time.
It has been March since UNG has traded at current price levels.
With nothing much in the supply equation changing, other than the evil attempt by some Democrats to limit access to the natural gas resources in the Marcellus Shale, it's probably backwardation at this time which has been driving the price of UNG recently.
Backwardation refers to the time future gas prices drop below expected future spot gas prices. That favors an ETF fund like UNG.
Thursday, April 22, 2010
EnCana (TSE:ECA) Production Goals Doubled
Even though natural gas prices are depressed at this time, EnCana (TSE:ECA)(NYSE:ECA) Corp. leadership says they're going to continue with their goal of doubling production over the next five years.
CEO Randy Eresman said on the earnings call of the company that even though natural gas prices are below $4 per million BTUs, that won't last forever, and eventually prices will rise again.
"We believe that the current low-price environment is unsustainable," he said. "We expect to see price improvements in the future, but that may take some time to unfold. We'll continue to maintain a longer-term perspective in how we execute our strategy."
Assuming Encana achieves their production goal, they will supply close to 10 percent of all natural gas used in North America at that time.
As far as natural gas prices go, Eresman is right, and eventually they will go up again, and Encana and other smart players in the game should reap solid rewards for some time, along with their shareholders.
Encana is a long-term play though, and needs to be considered that if investing in the company.
CEO Randy Eresman said on the earnings call of the company that even though natural gas prices are below $4 per million BTUs, that won't last forever, and eventually prices will rise again.
"We believe that the current low-price environment is unsustainable," he said. "We expect to see price improvements in the future, but that may take some time to unfold. We'll continue to maintain a longer-term perspective in how we execute our strategy."
Assuming Encana achieves their production goal, they will supply close to 10 percent of all natural gas used in North America at that time.
As far as natural gas prices go, Eresman is right, and eventually they will go up again, and Encana and other smart players in the game should reap solid rewards for some time, along with their shareholders.
Encana is a long-term play though, and needs to be considered that if investing in the company.
U.S. Natural Gas Fund (NYSEArca:UNG) Up on Lower Storage Level Growth
The U.S. Natural Gas Fund (NYSEArca:UNG) was up today as a surprise findings of a report from the Energy Information Administration found natural gas storage levels hadn't grown as high as expected, and the natural gas market responded positively to the news, driving prices up.
While this was a nice surprise for investors, it really is only a short-term event, as even after the lower-than-expected storage growth, figures still have natural gas levels up 18.5 percent higher than the five-year average, and up 5.5 percent from last year.
This shows me that once there is a sustainable turnaround in natural gas demand, the market is looking for an excuse to rise, and those companies and funds positioned for it should reward shareholders handsomely, as seen today with the U.S. Natural Gas Fund and others in the industry.
While this was a nice surprise for investors, it really is only a short-term event, as even after the lower-than-expected storage growth, figures still have natural gas levels up 18.5 percent higher than the five-year average, and up 5.5 percent from last year.
This shows me that once there is a sustainable turnaround in natural gas demand, the market is looking for an excuse to rise, and those companies and funds positioned for it should reward shareholders handsomely, as seen today with the U.S. Natural Gas Fund and others in the industry.
Natural Gas Prices Up on Lower Storage Levels
Investors in natural gas were surprised that storage levels had expanded less than anticipated, sending prices up, settling at $4.128 per 1,000 cubic feet on the New York Mercantile Exchange, an increase of 17.3 cents.
Original estimates by the energy department were natural gas levels were going to reach as high as 80 billion cubic feet, while growing by only 73 billion cubic feet; close to 1.83 trillion cubic feet for the week ending April 16.
Much of the discrepancy came from mild weather which had caused analysts to believe natural gas storage levels would rise higher.
Possible increased usage from the manufacturing sector and natural gas production being less than thought are reasons given for the storage levels being less than estimated.
Original estimates by the energy department were natural gas levels were going to reach as high as 80 billion cubic feet, while growing by only 73 billion cubic feet; close to 1.83 trillion cubic feet for the week ending April 16.
Much of the discrepancy came from mild weather which had caused analysts to believe natural gas storage levels would rise higher.
Possible increased usage from the manufacturing sector and natural gas production being less than thought are reasons given for the storage levels being less than estimated.
Friday, April 16, 2010
Jim Rogers Likes Natural Gas in the Energy Sector
Jim Rogers on Natural Gas
Jim Rogers was recently talking investing in energy, and stated he's not selling energy at this time, even though it has doubled over the last 12 months.
It seems he's not buying energy, but he said if he was, natural gas would be his choice, as natural gas prices are depressed, while oil has been high for some time.
Rogers said, "If I were buying energy, I would probably buy natural gas rather than oil just because it’s so depressed. I don’t like to buy when things are up. I like to buy things when down, when people are unhappy that’s when I like to buy things."
I think Jim Rogers may be being a little coy here, as I'm sure he's putting some major money into natural gas, which has nowhere to go but up, and with Rogers liking long-term plays, natural gas fits right into that strategy.
Jim Rogers was recently talking investing in energy, and stated he's not selling energy at this time, even though it has doubled over the last 12 months.
It seems he's not buying energy, but he said if he was, natural gas would be his choice, as natural gas prices are depressed, while oil has been high for some time.
Rogers said, "If I were buying energy, I would probably buy natural gas rather than oil just because it’s so depressed. I don’t like to buy when things are up. I like to buy things when down, when people are unhappy that’s when I like to buy things."
I think Jim Rogers may be being a little coy here, as I'm sure he's putting some major money into natural gas, which has nowhere to go but up, and with Rogers liking long-term plays, natural gas fits right into that strategy.
Monday, April 12, 2010
Huge Amount of Natural Gas Discovered in Levant Basin
Natural Gas Reserves in Levant Basin
Previously undiscovered natural gas have been found in the Levant Basin, with estimates of 122 trillion cubic feet available to be recovered, according to U.S. geologists. The Levant Basin is located in the Eastern Mediterranean.
According to the U.S. Geological Survey, the natural gas in the basin is considered "technically recoverable," which is a phrase meaning the existing practices and technology available to energy companies can tap into the reserves.
USGS Energy Resources Program Coordinator Brenda Pierce said this about the survey. "This assessment furthers our understanding of the world's energy potential, helping inform policy- and decision-makers in making decisions about future energy supplies."
Previously undiscovered natural gas have been found in the Levant Basin, with estimates of 122 trillion cubic feet available to be recovered, according to U.S. geologists. The Levant Basin is located in the Eastern Mediterranean.
According to the U.S. Geological Survey, the natural gas in the basin is considered "technically recoverable," which is a phrase meaning the existing practices and technology available to energy companies can tap into the reserves.
USGS Energy Resources Program Coordinator Brenda Pierce said this about the survey. "This assessment furthers our understanding of the world's energy potential, helping inform policy- and decision-makers in making decisions about future energy supplies."
Friday, March 26, 2010
Natural Gas Hits Record April Low
Natural Gas in Record April Low
As natural gas storage inventory grew last week, reports helped drive prices even lower, dropping it the lowest levels ever recorded in April, according to The Associated Press.
The lowest April price referred to was when contracts fell to $3.94 during the Thursday session.
Storage levels weren't able to be drawn down as thought, with warmer weather cutting back on demand.
For the five-year average, natural gas storage levels are 8 percent higher than usual.
Natural Gas in Record April Low
As natural gas storage inventory grew last week, reports helped drive prices even lower, dropping it the lowest levels ever recorded in April, according to The Associated Press.
The lowest April price referred to was when contracts fell to $3.94 during the Thursday session.
Storage levels weren't able to be drawn down as thought, with warmer weather cutting back on demand.
For the five-year average, natural gas storage levels are 8 percent higher than usual.
Natural Gas in Record April Low
U.S. Natural Gas Fund (NYSEArca:UNG) Struggles On
U.S. Natural Gas Fund
The U.S. Natural Gas Fund (NYSEArca:UNG), whose fate is tied in with the movement of natural gas (as it tracks whichever direction natural gas takes, being an exchange-traded fund), has found itself struggling as it plunges in value along with the huge drop in natural gas prices.
Since January 1, 2010, the fund has lost close to $1.5 billion in assets, close to 33 percent of the entirety of the fund.
Close to $450 million in cash has also been redeemed by investors, while another $1 billion was lost on those shorting the fund.
The fund, which was birthed in 2007, is now experiencing its worst losses since its inception.
Energy analysts say natural gas futures will struggle to break the $4 mark in the near term.
U.S. Natural Gas Fund
The U.S. Natural Gas Fund (NYSEArca:UNG), whose fate is tied in with the movement of natural gas (as it tracks whichever direction natural gas takes, being an exchange-traded fund), has found itself struggling as it plunges in value along with the huge drop in natural gas prices.
Since January 1, 2010, the fund has lost close to $1.5 billion in assets, close to 33 percent of the entirety of the fund.
Close to $450 million in cash has also been redeemed by investors, while another $1 billion was lost on those shorting the fund.
The fund, which was birthed in 2007, is now experiencing its worst losses since its inception.
Energy analysts say natural gas futures will struggle to break the $4 mark in the near term.
U.S. Natural Gas Fund
Thursday, March 25, 2010
Natural Gas Futures Plunge
Natural Gas Futures
After a government report stating for the first time in 2010 natural gas inventory grew, natural gas futures prices plunged in response.
The extremely cold winter has generated increased demand for the fuel, but the warmer weather and slow drawdown couldn't cut the large surpluses, with gas levels moving to 8 percent higher than the five-year average.
Natural gas fell 15.9 cents for April delivery to $3.946 per 1,000 cubic feet on the NYMEX. It dropped as low as $3.940, the lowest ever recorded for an April contract.
Natural Gas Futures
After a government report stating for the first time in 2010 natural gas inventory grew, natural gas futures prices plunged in response.
The extremely cold winter has generated increased demand for the fuel, but the warmer weather and slow drawdown couldn't cut the large surpluses, with gas levels moving to 8 percent higher than the five-year average.
Natural gas fell 15.9 cents for April delivery to $3.946 per 1,000 cubic feet on the NYMEX. It dropped as low as $3.940, the lowest ever recorded for an April contract.
Natural Gas Futures
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