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Natural Gas Prices Pressured Lower as Inventories Rise to Record High

06.11.2012  |  Marketwired
Five Star Equities Provides Stock Research on SandRidge Energy and Quicksilver Resources

NEW YORK, NY -- (Marketwire) -- 11/06/12 -- An abundance of natural gas has continued to pressure prices of the commodity in 2012. Natural gas futures last week fell to their lowest levels in over a month after the Energy Information Administration (EIA) reported inventories climbed to an all-time high. Five Star Equities examines the outlook for companies in the Natural Gas Industry and provides equity research on SandRidge Energy Inc. (NYSE: SD) and Quicksilver Resources Inc. (NYSE: KWK).


Access to the full company reports can be found at:

www.FiveStarEquities.com/SD

www.FiveStarEquities.com/KWK


A mild winter last year resulted in a drop in natural gas demand of 600 bcf from November-March. The drop in demand caused a glut of inventory, which pressured prices to the decade lows seen in April. The report released by the EIA showed that natural gas inventories increased by 65 billion cubic feet to a record 3.908 trillion cubic feet (TCF), surpassing the previous record of 3.852 tcf set in November 2011. According to analysts' the recent surge in prices have likely caused a drop in demand from utility companies who have reverted back to coal.

"The report was pretty bearish," said Aaron Calder, an analyst at Gelber & Associates. "It showed a lot of reverse fuel switching, or power generators switching from gas to coal."

Five Star Equities releases regular market updates on the Natural Gas Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.FiveStarEquities.com and get exclusive access to our numerous stock reports and industry newsletters.

SandRidge Energy is an oil and natural gas company with a principal focus on exploration and production. The company and its subsidiaries also own and operate gas gathering and processing facilities. The company is scheduled to release their third quarter results after market close on November 8, 2012. Sandridge expects to produce a total of 88.8 bcf of natural gas in 2012.

Quicksilver Resources is an independent oil and gas company engaged in the exploration, development and acquisition of oil and gas, primarily from unconventional reservoirs including gas from shale and coal beds in North America. The company has recently announced a Sand Was Basin joint development and AMI agreement with SWEPI LP, a subsidiary of Royal Dutch Shell plc.

Five Star Equities provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. Five Star Equities has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: www.FiveStarEquities.com/disclaimer



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