One Natural Gas Company Worth Looking Into… Now And Later

Tony Daltorio, Investment U Research

These days, the US natural gas market finds itself weighted down by doom and gloom.

With North America choking on the stuff and underground storage of natural gas potentially approaching 4 trillion cubic feet, pundits keep saying that the market will see prices plunge to $2 per million BTU, where it will stay for years.

To contrarian investors such as myself, that type of talk couldn’t sound any more sweet…

Despite the gloom, we can still see a few glimmers of light in the natural gas market, such as drilling grinding to a multi-year low, barely a year after reaching its all-time high. Or the fact that some producers have voluntarily reduced output, deeming the present value of gas in the ground superior to current prices.

One way or another,

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A weak durable goods order report and a slide in commodity prices sent indices to a second consecutive day of light losses as stocks appeared vulnerable to a pullback in the absence of reassuring economic signs.  A search and advertising deal between Microsoft and Yahoo also received a cold response from investors even as the Federal Reserve contended that the severity of recession is easing in most parts of the country.  Also driving the markets lower were shares of oil and gas producers and basic material manufacturers as oil prices declined for another day.  Crude prices plunged $3.88 to $63.35 a barrel after the Energy Department reported a sharper-than-expected build in weekly crude inventories.  

On Tuesday, stocks had declined after a weaker-than-anticipated consumer confidence report and a lackadaisical response to the auction of 2-year notes drew investors to the selling table.  The trend continued Wednesday and treasuries moved lower

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For Immediate Release

Chicago, IL – July 14, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: America Movil (AMX), Apple Inc (AAPL), Telefonica (TEF), Exxon Mobil Corp. (XOM) and Chevron Corp. (CVX).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Monday’s Analyst Blog:

America Movil Battles Movistar

America Movil (AMX), the leading provider of wireless services in Latin America, has announced its plan to launch the highly anticipated iPhone 3GS, an upgraded version of Apple Inc’s (AAPL) iPhone 3G, in six countries across central and south America by

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On Friday, July 10, Exxon Mobil Corp. (XOM), the world’s largest publicly traded oil company, gained a permit from Norway’s top petroleum resources regulatory agency, the Norwegian Petroleum Directorate (NPD), to drill wellbore 25/8-17 in production license 027 D.

The Texas-based oil giant plans to drill wildcat wells (well drilled in an area where no current oil or gas production exists) on the license using semi-submersible facility Bredford Dolphin. Exxon Mobil has a 50% operated interest in the production license 027 D, which was awarded in December 2007. Well 25/8-17 is located just south of the company’s Jotun field project in North Sea and is the second well drilled on the production license.

One of the largest oil and gas producers on the Norwegian continental shelf, Exxon’s recent award demonstrates its global approach to the identification and pursuit of quality hydrocarbon resources and exploration opportunities.

We currently have

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Helix Wind, Corp. announced today that it has entered a joint development agreement with CheckPoint Process Pumps & Systems to provide renewable energy solutions for the global oil and gas production industry. According to the terms of the agreement, these solutions will be distributed, installed and maintained by CheckPoint, and address the large and growing demand within the oil and gas industry for sustainable, clean energy at remote wellhead locations. The parties anticipate the deployment of a unique, cost-effective solution within the current calendar year.

Helix Wind CEO Ian Gardner stated, “This strategic development agreement with CheckPoint illustrates Helix’s commitment to addressing solution-based small wind needs around the world. We are excited to provide a new, economically attractive way for petroleum producers to reduce their carbon footprint, and are pleased to play a major role in the development of a much needed renewable energy platform for the oil and gas

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Axial Vector Energy Corp. announced that its new Joint Venture Company PETRO AVEC has lauched a website (www.petroavec.com) to educate customers and investors about its recently patented technology. Axial Vector is 40% holder of PETRO AVEC and will continue developing its proprietary technology for treatment of sour crude. The Joint Venture Company holds patents, among others, that have broad application for removal of sulfur and nitrogen in multiple refinery applications.

Mr. Ahmed Khalifa, Chairman of AVEC, commented, “This will be our access portal to the world’s environmental groups, oil and gas producers and governments all of whom recognize the importance of removing the sulphur from oil and gas as a paramount step that the world must take.”

He added, “With this Joint Venture, AVEC is now implementing its business plan quickly to clean the oil and the air we all breath, run it

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A massive slump in oil exploration spending pummeled Schlumberger Ltd. (SLB), the world’s largest oilfield services corporation, as profit fell 17% in the fourth quarter. But the company said curtailed spending could be setting the stage for a rebound in oil and gas prices as supplies dwindle. Schlumberger is pulling back as a collapse in petroleum prices led to a sharp drop in exploration spending by its customers. Commodity prices have plummeted in recent months, as recessions in some of the world’s largest economies dampened demand. Like all oil producers, Schlumberger has been hurt by the plunge in the price of oil, which has fallen from $147 per barrel in July to about $42 per barrel now. The company has also seen its budget for exploration cut by 40%....

Powell Industries Inc. (...

Western Standard Energy Corp., (OTCBB: WSEG) has hired Tim Turner as vice-president of its Land division. Starting at Exxon in 1980, Turner’s career spans 28 years through upstream oil and gas and business consulting services in Texas, throughout the United States, and internationally. He worked for Exxon Company, in New Orleans, La., and for Phillips Petroleum in Houston, Texas.

For the last 13 years, Turner, a certified Landman, has led the oil industry-consulting firm, Tim Turner & Associates, LLC. Clients there include Gazprom, Pemex, PDVSA and Saudi Aramco, as well as other major, independent and international oil and gas producers.

“We plan to expand the business through joint venture partnerships, developing our vast portfolio of exploration assets in Montana and North Dakota, and through the acquisition of producing assets,” said Dan Bauer, Western Standard president and CEO. “Tim’s knowledge and experience on the business side will prove to be invaluable in that

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Can BP recover from losing Robert Dudley? In a move thought to be an attempt to punish Russia for its actions in Georgia, the US is pulling out of a civilian nuclear cooperation deal with Russia. Meanwhile the US’ potential civil nuclear deal with India is continuing to garner support. Should we be more concerned about energy consolidation in former Soviet states and countries bordering the Caspian? Gazprom is likely to receive licenses for the development of seven new gas fields in Russia. US oil and gas producers in the Gulf of Mexico are bracing themselves for a hit from Hurricane Ike. On Opec’s struggle to keep oil over $100 a barrel.