Natural Gas Futures Have Fallen Nearly 20 Percent From 12-Month High in November

NEW YORK, NY -- (Marketwire) -- 01/10/13 -- After reaching a 12-month high in November, natural gas futures have since fallen 19 percent. Futures have declined for three consecutive days on growing speculation that mild temperatures across the U.S. will cause a steep drop in heating demand. Five Star Equities examines the outlook for companies in the Natural Gas Industry and provides equity research on Chesapeake Energy Corporation (NYSE: CHK) and SandRidge Energy Inc. (NYSE: SD).
Access to the full company reports can be found at:
www.FiveStarEquities.com/CHK
www.FiveStarEquities.com/SD
Unusually mild weather combined with near record inventories has created a bearish outlook for natural gas prices heading into peak demand season as roughly 50 percent of all households in the U.S. use natural gas for heating, according to the Energy Department. Historically, from late November to the first week of February natural gas prices have fallen approximately 42 percent.
"We see prices ultimately testing $2.20 and even last year's sub-$2, if the weather continues to moderate," wrote Energy OverView editor, Mike Fitzpatrick. "Like last year, we will be in a situation where we will be coming out of the peak-demand season with ample storage. The bearish sentiment will become overwhelming."
Five Star Equities releases regular market updates on the Shipping 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.
Chesapeake Energy has recently reported that CEO Aubrey McClendon will; not take a bonus for last year. The company anticipates completing the sale of its remaining midstream assets, including Mid-Continent and other assets, by the end of the 2013 first quarter for approximately $425 million. Combined with the 2012 midstream asset sales, proceeds are expected to total approximately $4.875 billion.
SandRidge Energy focuses on drilling low-risk, conventional, high rate-of-return oil wells in shallow carbonate reservoirs. The company last month agreed to sell its Permian Basin properties to Sheridan Production Partners II for $2.6 billion in cash. With the sale the company will have a cash balance of $3 billion and liquidity of over $3.5 billion according to the company's Chairman and CEO Tom Ward.
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