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Ultra Petroleum Corp. Message Board

  • younessi younessi Nov 28, 2012 11:01 AM Flag

    Natural Gas Stockpiles Shrink

    "Stockpiles held in underground storage in the lower 48 states fell by 38 billion cubic feet (Bcf) for the week ended November 16, 2012, higher than the guided range (of 23–27 Bcf gain) as per the analysts surveyed by Platts, the energy information arm of McGraw-Hill Companies Inc. (MHP - Analyst Report).

    The decrease represents the second withdrawal of the 2012-2013 winter heating season after stocks hit an all-time high in early November. More importantly, the weekly storage draw has trimmed the surplus relative to the benchmarks."

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

    However, with the upcoming U.S. winter set to be colder than the unusually warm last one and domestic output likely to drop in 2013 versus 2012 on the back of natural gas players announcing drilling/volume curtailments, we might expect some balancing of the commodity’s supply/demand disparity.

    This, in turn, could improve the prices and buoy natural gas producers like Ultra Petroleum Corp. (UPL - Analyst Report), Talisman Energy Inc. (TLM - Analyst Report), Encana and Chesapeake."

    Sentiment: Strong Buy

 
UPL
14.63-0.28(-1.88%)May 22 4:02 PMEDT