Buy Encana (ECA) Says Nenner

In an interview on Breakout, Charles Nenner gave his input on the price movements of oil and natural gas, where he sees the recent roles being reversed as oil continues to drop in price while natural gas has jumped from $1.80 about a month ago to $2.70 now. Nenner was very close to calling that exact, where he saw natural gas dropping to $1.70 before it rebounded.

From the end of April, oil has plummeted over 20 percent, while natural gas has climbed over 30 percent during the same period.

Going forward, Nenner, who tracks momentum and cycles in the two industries, said he doesn't see crude stopping it decline until November, where sees it going to as low as $68 a barrel. It makes one wonder if the Obama administration isn't manipulating the markets, as it is voting time right when oil is supposed to hit that level.

It also makes one wonder why natural gas is soaring, as that will ultimately be a positive for the anemic and sometimes unethical, so-called green energy sector, as it'll make it more competitive with natural gas, which has drawn much of the shine away from those boondoggles surrounding the very expensive alternative energy sources.

For natural gas, he sees it staying weak into the latter part of July before continuing to climb in price. In other words, traders and investors still have an opportunity to get in on natural gas before it continues to climb.

If you're not buying natural gas futures, Nenner recommends Encana Corp. (NYSE: ECA) as his top stock pick in the sector. He recommends waiting until July to get into it.

Nenner doesn't see oil picking back up until November.

Encana closed at $19.40, dropping $0.82, or 4.13 percent.

Key Energy (KEG) (BCEI) (CLD) (SYRG) (WFT) (PGH) Ratings, Price Targets

Key Energy (KEG), Bonanza Creek Energy Inc (BCEI), Cloud Peak Energy (CLD), Synergy Resources (SYRG), Weatherford (WFT) and Pengrowth Energy Trust (PGH) had ratings and price targets on them adjusted by analysts.
Wunderlich Securities initiated coverage on Bonanza Creek Energy (BCEI). They placed a "Buy" rating and price target of $29.00 on the company.

JPMorgan Chase (NYSE:JPM) initiated coverage on Cloud Peak Energy (CLD). They placed a "Neutral" rating and price target of $16.00 on the company.

Wunderlich Securities initiated coverage on Synergy Resources (SYRG). They placed a "Buy" rating and price target of $5.00 on the company.

Macquarie initiated coverage on Weatherford (WFT). They placed an "Outperform" rating on the company.

Raymond James (NYSE:RJF) downgraded Pengrowth Energy Trust (PGH) from an "Outperform" rating to a "Market Perform" rating.

FBR Capital downgraded Key Energy (KEG) from an "Outperform" rating to a "Market Perform" rating. They lowered their price target on the company from $18.00 to $9.00.

Exxon (XOM) Receives Approval for Hebron

Exxon Mobil (NYSE: XOM) received approval from Labrador Offshore Petroleum Board and Newfoundland to proceed with plans to develop the Hebron oil field. The field is located off Newfoundland, Canada.

Partners with Exxon in the endeavor include Chevron (NYSE: CVX), with a 26.7 percent interest; Suncor Energy (NYSE: SU), with 22.7 percent; and Statoil ASA (NYSE: STO), with 9.7 percent. Exxon has a 36 percent stake in the field.

Locally, Energy Corporation of Labrador and Newfoundland has a 4.9 percent stake in the venture.

Production at the field is expected to average approximately 150,000 barrels a day, although it could rise as high as 180,000 barrels a day.

There are an estimate 707 million barrels of oil located in the Hebron oil field.