Infrastructure constraints during the second quarter put a crimp in SM Energy Co.’s operated Eagle Ford Shale output, prompting the Denver-based company to divert some capital to the Permian Basin, where getting production to market is easier for the time being. And a steep drop in net income pummeled the Denver-based producer’s shares.
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The physical market plunged overall on average by about 14 cents Friday as a combination of a weak screen along with operational problems in places on the East and West Coasts worked to pummel prices lower.
Given the continued weak outlook for U.S. natural gas, explorers with exposure to high rates of return (ROR) in liquids-focused plays, both in the onshore, as well as the shallow waters of Gulf of Mexico’s Outer Continental Shelf, provide the best upside going forward, according to the energy team at Credit Suisse.
The “perma-bulls” at Raymond James & Associates Inc. have dialed back their assumptions for the U.S. natural gas rig count and giving in to the inevitable: low prices are taking down rigs in the gas patch. The good news: there’s “blistering” growth for oil and liquids drillers.
Because natural gas demand still is being hurt by weak U.S. gross domestic product (GDP) growth, industrial output and “uncommonly warm weather,” Deutsche Bank on Friday reduced its gas price forecast for the second time in less than a month.
North American explorers aren’t going to let a little thing like weak natural gas prices get in the way of record spending plans in 2012, a recent survey by Barclays Capital has found.
North American explorers aren’t going to let a little thing like weak natural gas prices get in the way of record spending plans in 2012, a new survey by Barclays Capital has found.
Although influences such as weather forecasts and record-setting storage inventories were on the weak side, only a couple of points (OGT in the Midcontinent and NOVA Inventory Transfer in Western Canada) were lower Tuesday.
December natural gas posted a new low Friday as analysts factored in a continued weak technical picture along with a weather outlook that fails to even hint at seasonally cool temperatures. The number of rigs drilling for gas, however, posted a steep decline. December fell 6.5 cents to $3.584 and January skidded 5.1 cents to $3.696. December crude oil continued its march higher, adding $1.21 to $98.99/bbl.
Cash prices across the board were mainly weak Wednesday for Thursday delivery, but a large weather system heading south out of Canada was able to lift quotes on Midcontinent pipelines as the system was forecast to head east. Rockies quotes followed Tuesday’s futures swan dive, and eastern traders unloaded gas as they digested near-term weather forecasts.