Ample Supplies and Falling Heating Demand Creates Bearish Outlook for Natural Gas

NEW YORK, NY -- (Marketwire) -- 01/11/13 -- 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 Anadarko Petroleum Corporation (NYSE: APC) and Devon Energy Corporation (NYSE: DVN).
Access to the full company reports can be found at:
www.FiveStarEquities.com/APC
www.FiveStarEquities.com/DVN
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 editior, 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 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.
Anadarko is among the largest independent oil and natural gas exploration and production companies in the world, with 2.54 billion barrels of oil equivalent (BBOE) of proved reserves at year-end 2011. Last month, the company reported that four of their core U.S. onshore operating areas surpassed the 100,000 BOE per day milestone.
Devon produces about 2.6 billion cubic feet of natural gas each day -- more than 3 percent of all the gas consumed in North America. The company also owns natural gas pipelines and treatment facilities in many of their producing areas, making them one of North America's larger processors of natural gas liquids.
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