A number of energy companies enjoyed moves into positive territory today, including Chesapeake Energy (CHK), Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX), which were all up on stronger oil prices and a perceived increase in demand for natural gas as a streak of warmer weather approaches.
Shares of energy companies have been getting hit hard as of late, with 12 of the last 13 trading session has shares in the companies down.
The NYSE Arca Natural Gas Index, the NYSE Arca Oil Index, and the Philadelphia Oil Service Index were all trading positive in mid-day action.
Electrical utilities have been changing from coal use to cheaper natural gas, which has helped the beleaguered fuel source get some strength to it.
Oil prices rose to over $92 a barrel, jumping $.62 a barrel a little before noon.
BP (NYSE: BP), Nabors Industries (NYSE: NBR) and Valero Energy Corp. (NYSE: VLO) were all trading much stronger in response to positive signals.
Monday, May 21, 2012
Friday, May 18, 2012
Peabody Energy (BTU) Leases Over 400 Million Tons of Coal
The bid by Peabody Energy Corp. (NYSE: BTU) of $1.11 per mineable ton of sulfur coal was enough to land it control over 402 million tons of ultra low sulfur coal reserves located in Wyoming.
The leased tons are in Southern Powder River Basin in Wyoming, which is next to the North Antelope Rochelle Mine the coal giant operates.
Also close to the mine is the North Porcupine region which Peabody will bid upon in the second quarter. At this time the company 3.3 billion tons of coal reserves in the area.
With the Obama administration attack on the coal industry, it has put enormous pressure on coal companies, including Peabody, which closed Friday at $24.77, falling $1.19, or 4.77 percent. That's over a dollar below the 52-week low of $24.73.
The leased tons are in Southern Powder River Basin in Wyoming, which is next to the North Antelope Rochelle Mine the coal giant operates.
Also close to the mine is the North Porcupine region which Peabody will bid upon in the second quarter. At this time the company 3.3 billion tons of coal reserves in the area.
With the Obama administration attack on the coal industry, it has put enormous pressure on coal companies, including Peabody, which closed Friday at $24.77, falling $1.19, or 4.77 percent. That's over a dollar below the 52-week low of $24.73.
Thursday, May 17, 2012
Chesapeake (CHK) Abandoned by Major Investment Funds
According to regulatory filings, Chesapeake Energy Corp. (NYSE: CHK) has had a number of investment funds funds sell off huge portions of their stakes in the company.
Chesapeake has been under fire and pressure for a long time on the outrageous amount of debt it has incurred, resulting in the need to either sell of quality assets at below market levels, or to tap into more debt in hopes of riding out the natural gas market in hopes prices will rise, or colder winters are on the horizon.
Many funds sold of all, or close to all of their holdings in Chesapeake, including Highbridge Capital Management LLC, which sold all its holdings in the company; Two Sigma Investments LLC sold 98 percent of its holdings, while S.A.C. Capital Advisors LP sold off 91 percent of the shares it held in the company.
Others selling off over half of their stakes in Chesapeake include Millennium Management LLC, which sold 86 percent of their stake in the natural gas giant; OZ Management LLC slashed its holdings by 64 percent; Fidelity Management & Research Co. cut the amount of shares it held in Chesapeake by 59 percent; and Adage Capital Advisors LLC got rid of 57 percent of the shares it held in Chesapeake.
Chesapeake closed at $13.58, down $0.46, or 3.28 percent.
Chesapeake has been under fire and pressure for a long time on the outrageous amount of debt it has incurred, resulting in the need to either sell of quality assets at below market levels, or to tap into more debt in hopes of riding out the natural gas market in hopes prices will rise, or colder winters are on the horizon.
Many funds sold of all, or close to all of their holdings in Chesapeake, including Highbridge Capital Management LLC, which sold all its holdings in the company; Two Sigma Investments LLC sold 98 percent of its holdings, while S.A.C. Capital Advisors LP sold off 91 percent of the shares it held in the company.
Others selling off over half of their stakes in Chesapeake include Millennium Management LLC, which sold 86 percent of their stake in the natural gas giant; OZ Management LLC slashed its holdings by 64 percent; Fidelity Management & Research Co. cut the amount of shares it held in Chesapeake by 59 percent; and Adage Capital Advisors LLC got rid of 57 percent of the shares it held in Chesapeake.
Chesapeake closed at $13.58, down $0.46, or 3.28 percent.
Fracking Banned in Irrelevant Vermont
In a bizarre and ignorant move by Democrat Gov. Peter Shumlin of Vermont, he signed a strange law which bans hydraulic fracturing in the state, even though there is pretty much no known gas or oil underneath the Vermont ground.
The law is strange for that very reason, as the nutty governor added this: "I hope other states will follow us. The science on fracking is uncertain at best. Let the other states be the guinea pigs. Let the Green Mountain State preserve its clean water, its lakes, its rivers and its quality of life."
This is such a cowardly act it is odd that it was even employed as an attempted tactic to sway other states to take similar actions.
How hard is it to ban something that has absolutely no political cost or fallout because it doesn't exist in the state?
If it would have brought in tax revenue and created jobs for those in Vermont, you wouldn't have seen the governor blabbing his mouth and uttering contradictions in the confusing way he did.
Out of one side of his mouth he said other states with huge energy resources should follow Vermont's lead, while the other side of his mouth he says other states should be the "guinea pigs" for testing fracking.
America's Natural Gas Alliance responded saying the Vermont law was "poor policy that ignores fact, science and technology," adding natural gas is being produced "safely and responsibly."
As for the so-called preservation of quality of life, let's stop selling oil and gas extracted using fracking to Vermont and see what the quality of life people have in the state comes to.
The law is strange for that very reason, as the nutty governor added this: "I hope other states will follow us. The science on fracking is uncertain at best. Let the other states be the guinea pigs. Let the Green Mountain State preserve its clean water, its lakes, its rivers and its quality of life."
This is such a cowardly act it is odd that it was even employed as an attempted tactic to sway other states to take similar actions.
How hard is it to ban something that has absolutely no political cost or fallout because it doesn't exist in the state?
If it would have brought in tax revenue and created jobs for those in Vermont, you wouldn't have seen the governor blabbing his mouth and uttering contradictions in the confusing way he did.
Out of one side of his mouth he said other states with huge energy resources should follow Vermont's lead, while the other side of his mouth he says other states should be the "guinea pigs" for testing fracking.
America's Natural Gas Alliance responded saying the Vermont law was "poor policy that ignores fact, science and technology," adding natural gas is being produced "safely and responsibly."
As for the so-called preservation of quality of life, let's stop selling oil and gas extracted using fracking to Vermont and see what the quality of life people have in the state comes to.
Wednesday, May 16, 2012
Horizontal Drilling Bill Approved by Ohio Senate
New rules for horizontal drilling in Ohio has been approved by the Senate on a bipartisan basis.
This is in response to those who are attempting to slow down drilling in shale in the eastern part of the United States, which would devastate the extraordinary potential for enormous energy deposits, as well as the creation of numerous, good-paying jobs.
Some of the requirements of the bill include companies having to disclose the types of chemicals which would contact the water supplies used by human beings while they were drilling.
Any well that is to be drilled must also have all water wells within 1,500 feet of them tested.
Whether searching for natural gas, natural gas liquids or oil, the companies also must reveal the location they'll draw water from for the purpose of fracking or blasting the shale to require the energy sources. Also required is the volume and rate at which the firms will extract the water.
Ohio Governor John Kasich lauded the bill saying that "Ohio approaches energy production and consumption in a safe and responsible way, while also giving families and job creators access to more affordable energy."
As for concerns over wastewater, Senator Shannon Jones, who sponsored this legislation, said that will be addressed in separate legislation in the future.
This is in response to those who are attempting to slow down drilling in shale in the eastern part of the United States, which would devastate the extraordinary potential for enormous energy deposits, as well as the creation of numerous, good-paying jobs.
Some of the requirements of the bill include companies having to disclose the types of chemicals which would contact the water supplies used by human beings while they were drilling.
Any well that is to be drilled must also have all water wells within 1,500 feet of them tested.
Whether searching for natural gas, natural gas liquids or oil, the companies also must reveal the location they'll draw water from for the purpose of fracking or blasting the shale to require the energy sources. Also required is the volume and rate at which the firms will extract the water.
Ohio Governor John Kasich lauded the bill saying that "Ohio approaches energy production and consumption in a safe and responsible way, while also giving families and job creators access to more affordable energy."
As for concerns over wastewater, Senator Shannon Jones, who sponsored this legislation, said that will be addressed in separate legislation in the future.
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