Breaking News

Tweet TWEET

Chesapeake Energy, Encana Corp., Devon Energy Corp., Nabors Industries and Helmerich & Payne highlighted in Zacks Analyst Blog:

  Chesapeake Energy, Encana Corp., Devon Energy Corp., Nabors Industries and
             Helmerich & Payne highlighted in Zacks Analyst Blog:

PR Newswire

CHICAGO, Jan. 16, 2013

CHICAGO, Jan. 16, 2013 /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 (CHK), Encana
Corp. (ECA), Devon Energy Corp. (DVN), Nabors Industries (NBR) and Helmerich &
Payne (HP).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Today, Zacks is promoting Four daily picks are offered free.

Here are highlights from Wednesday's Analyst Blog:

Natural Gas Supplies Tumble

The U.S. Energy Department's weekly inventory release showed a
larger-than-expected decrease in natural gas supplies. Despite this drawdown,
gas stocks continue to remain bloated, reflecting low demand amid robust
onshore output.

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), Encana Corp. (ECA), Devon Energy Corp. (DVN), Nabors Industries
(NBR) and Helmerich & Payne (HP).

Analysis of the Data

Stockpiles held in underground storage in the lower 48 states fell by 201
billion cubic feet (Bcf) for the week ended January 4, 2013, higher than the
guided range (of 183–187 Bcf drawdown) as per the analysts surveyed by Platts.

The decrease represents the seventh withdrawal of the 2012-2013 winter heating
season after stocks hit an all-time high in early November. Moreover, the draw
was significantly higher than both the last year's withdrawal of 90 Bcf and
the five-year (2008–2012) average reduction of 132 Bcf for the reported
week.As a result of the 'better-than-expected' draw during the past week, the
current storage level – at 3.316 trillion cubic feet (Tcf) – is down 88 Bcf
(2.6%) from the last year though it is still 320 Bcf (10.7%) above the
five-year average.

In fact, natural gas inventories in underground storage have persistently
exceeded the five-year average since late September 2011 and ended the usual
summer stock-building season of April through October at a record 3.923 Tcf
(as of October 31, 2012).

A supply glut kept the natural gas prices under pressure during the couple of
years or so, as production from dense rock formations (shale) – through novel
techniques of horizontal drilling and hydraulic fracturing – remain robust,
thereby overwhelming demand.

However, with the U.S. winter set to be colder than the unusually warm last
one, we might expect some balancing of the commodity's supply/demand disparity
on the back of its more normalized use for space heating by
residential/commercial consumers.

This, in turn, could improve the prices and buoy natural gas producers like
Encana and Chesapeake.

Zacks Rank

Among the natural gas-associated companies mentioned above, Anadarko
Petroleum, Chesapeake Energy, Ultra Petroleum, Encana, Nabors, Devon Energy,
Patterson-UTI Energy and Halliburton are all Rank #3 (Hold) stocks, implying
that these are expected to perform in line with the broader U.S. equity market
over the next one to three months.

However, Talisman retains a Rank #5 (Strong Sell), while Helmerich & Payne's
Rank #2 (Buy) implies that the company is likely to outperform the broader
U.S. equity market over the next one to three months.

Today, Zacks is promoting Four daily picks are offered free.

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.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed
in 1978. The later formation of the Zacks Rank, a proprietary stock picking
system; 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.

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

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment
is the potential for loss. This material is being provided for informational
purposes only and nothing herein constitutes investment, legal, accounting or
tax advice, or a recommendation to buy, sell or hold a security. No
recommendation or advice is being given as to whether any investment is
suitable for a particular investor. It should not be assumedthat any
investments in securities, companies, sectors or markets identified and
described were or will be profitable. All information is current as of the
date of herein andis subject to change without notice. Any views or opinions
expressed may not reflect those of the firm as a whole. Zacks Investment
Research does not engage in investment banking, market making or asset
management activities of any securities. These returns are from hypothetical
portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced
monthly with zero transaction costs. These are not the returns of actual
portfolios of stocks. The S&P 500 is an unmanaged index. Visit
http://www.zacks.com/performance for information about the performance numbers
displayed in this press release.

SOURCE Zacks Investment Research, Inc.

Website: http://www.zacks.com
 
Press spacebar to pause and continue. Press esc to stop.