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.

Goldman Sachs (NYSE:GS) Acquires Nexen (TSE:NXY) Natural Gas Marketing Unit

Goldman Sachs (NYSE:GS) has acquired the natural gas marketing unit of Nexen (TSE:NXY) (NYSE: NXY), the Canadian-based oil and gas producer.

Nexen Vice-President Pierre Alvarez confirmed that has sold the division, but had nothing to say about the details of the transaction.

The tremendous amount of natural gas supplies has cut the need to physically transport the raw material, and so Nexen has been looking to offload the division for some time.

Nexen says it will focus on its core businesses, especially crude oil and shale gas production.

The natural gas marketing unit has never done well for Nexen, and selling it to Goldman Sachs is a good move, as it offloads and asset that does nothing for them, while turning it over to Goldman, who should be able to make it work far better than it has in the past.