SOURCE: Paragon Financial Limited

Paragon Financial Limited

September 07, 2012 08:20 ET

Natural Gas Supplies Continue to Build Despite Price Rally

The Paragon Report Provides Stock Research on Cheniere Energy and Quicksilver Resources

NEW YORK, NY--(Marketwire - Sep 7, 2012) - Natural gas prices have been in a long slump as production has grown dramatically in recent years as advances in technology have unlocked vast new reserves. According to data from the U.S. Energy Information Administration Gross, gas output hit a record high of 72.74 bcf per day in January. The United States Natural Gas Fund (UNG) is down roughly 25 percent year-to-date. The Paragon Report examines investing opportunities in the Natural Gas Industry and provides equity research on Cheniere Energy, Inc. (NYSE: LNG) and Quicksilver Resources Inc. (NYSE: KWK).

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Since hitting a decade low of $1.90 per million British thermal units in April natural gas prices have rallied approximately 47 percent. While prices have rallied sharply, natural gas supplies have also continued to grow despite producers slashing the number of natural gas rigs. Data from Baker Hughes shows that the number of rigs drilling for natural gas has fallen to 473 from 895 a year ago. At the same time oil drilling rigs have surged by 355 from a year ago, this is key factor as roughly a quarter of natural gas production in the U.S. is a byproduct of oil drilling according to the EIA. Natural gas stocks are currently 14.6 percent higher than last year, and 12 percent higher than the five-year average.

"You're not going to permanently fix the gas market unless oil prices are meaningfully lower," said Pearce Hammond, an analyst with Houston investment bank Simmons.

Paragon Report 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 and get exclusive access to our numerous stock reports and industry newsletters.

Cheniere Energy is a Houston-based energy company primarily engaged in LNG related businesses, and owns and operates the Sabine Pass LNG terminal and Creole Trail pipeline in Louisiana. LNG exports from the Sabine Pass LNG terminal are anticipated to commence as early as 2015, with the second liquefaction train commencing operations approximately six to nine months thereafter.

Quicksilver Resources is an independent oil and gas company engaged in the exploration, development and acquisition of oil and gas, primarily from unconventional reservoirs including gas from shales and coal beds in North America. Production averaged 359 million cubic feet of natural gas equivalent (MMcfe) per day during the second quarter, down from 417 MMcfe per day in the prior-year quarter.

The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: