Is Natural Gas Hitting Upper Resistance levels

Natural Gas was able to add value again as prices moved back toward the upper resistance level of $3/mmbtu. Weather related demand is continuing to become less of a bullish factor from both the short term temperature forecasts to the tropics. The latest NOAA six to ten day temperature forecast is projecting the smallest area of above normal temperature so far this summer which is certainly not very supportive for Nat Gas prices. The eight to fourteen day forecast is a bit more bullish in that it is projecting a larger area of above normal temperatures. Overall both forecasts will not nearly result in as much Nat Gas related cooling demand as what was experienced during the first half of the summer. The net result net injections will continue to creep higher over the next several weeks.

In addition the tropics are not threatening to Nat Gas production in the Gulf of Mexico as Ernesto is heading into Mexico and the two other tropical weather patterns out in the Atlantic are still low grade tropical weather event and it is much too early to project whether or not they will strengthen into something more impacting. Overall I do see any short term fundamental support for the current level of prices. I would expect that the market will run into difficulty in breaking through the technical resistance level of around $3/mmbtu.

Test drive our video analysis and trade idea service for only $1.00

Today the EIA released their latest STEO report. Following are the main highlights relate to Nat Gas from the report.

EIA expects that natural gas consumption will average 69.8 billion cubic feet per day (Bcf/d) in 2012, an increase of 3.2 Bcf/d (4.8 percent) from 2011. Large gains in electric power use in 2012 will more than offset declines in residential and commercial use. Projected consumption of natural gas in the electric power sector averages 25.4 Bcf/d in 2012, 22 percent higher than in 2011, primarily driven by the improved relative cost advantages of natural gas over coal for power generation in some regions.

Consumption in the electric power sector during 2012 peaks at 31.6 Bcf/d in the third quarter, when electricity demand for air conditioning is highest. As a result of the extreme heat last month, estimated electric power sector natural gas consumption during July 2012 averaged 34.8 Bcf/d, 1.8 Bcf/d higher than projected in last month's Outlook......Read Dominik Chirihella' entire article.

Get our Free Trading Videos, Lessons and eBook today!

Gastar Exploration Reports Second Quarter 2012 Results

Gastar Exploration Ltd. (NYSE:GST) today reported financial and operating results for the three and six months ended June 30, 2012. Excluding non cash impairment charges and unrealized hedging gains, adjusted net loss attributable to Gastar's common shareholders was $4.1 million, or $0.06 per diluted share for the second quarter of 2012. Including the effect of a non cash impairment of natural gas and oil properties of $72.7 million and an unrealized hedging gain of $2.8 million, reported net loss for the second quarter of 2012 was $74.0 million, or $1.17 per diluted share.

Excluding the impact of an unrealized natural gas hedging gain of $502,000 and other special items in the second quarter of 2011, adjusted net loss was $377,000, or $0.01 per diluted share for the period. Including the $502,000 gain and other special items, reported net income for second quarter of 2011 was $126,000 or $0.00 per diluted share. (See the accompanying reconciliation of net income (loss) per common share and earnings per diluted share to this non-GAAP financial measure at the end of this news release.)

Our net cash provided by operating activities before working capital changes for the second quarter of 2012 was $5.5 million or $0.09 per share compared to $2.9 million or $0.05 per share for the second quarter of 2011. Our net cash provided by operating activities before working capital changes and adjusted to exclude litigation settlement expense was $9.6 million or $0.15 per share for the first six months of 2012 versus $7.5 million or $0.12 per share for the same period last year. (See the accompanying reconciliation of cash flow before working capital changes and as adjusted for special items to GAAP financial measures at the end of this news release.)

Test drive our video analysis and trade idea service for only $1.00

Natural gas, oil and natural gas liquids (NGLs) revenues increased 31% to $11.1 million in the second quarter of 2012, up from $8.5 million in the second quarter of 2011. The increase was the result of an 87% growth in production volumes partially offset by a 30% decrease in realized commodity prices. Average daily production was 34.8 million cubic feet of natural gas equivalent (MMcfe) per day for the second quarter of 2012, compared to 18.6 MMcfe per day for the same period in 2011.

Liquids revenues (oil, including condensate, and NGLs) represented approximately 40% of our total natural gas, oil and NGLs revenues for the second quarter of 2012 compared to 12% for the second quarter of 2011. Liquids daily production represented approximately 19% of total production for the second quarter of 2012 compared to 16% for the first quarter of 2012 and 4% for the second quarter of 2011. Sequentially, total average daily production in the second quarter increased 18% from first quarter 2012 production of 29.4 MMcfe per day.

Read the entire Gastar earnings report and just click here to get your free trend analysis for GST

Get our Free Trading Videos, Lessons and eBook today!

Carrizo Oil & Gas [CRZO] Announces Record Production and Revenue in Second Quarter 2012 Results

Carrizo Oil & Gas, (NASDAQ: CRZO) today announced the Company's record financial results for the second quarter of 2012, which included the following highlights:

Results for the second quarter of 2012

* Record Oil Production of 7,618 Bbls/d, a 28% sequential increase from the first quarter of 2012

* Record Total Production of 2,393 Mboe, or 26,297 Boe/d, (equivalently 14.4 Bcfe, or 157,783 Mcfe/d), a 4% sequential increase from the first quarter of 2012

* Record Oil Revenue of $68.6 million, amounting to 82% of total revenue

* Record Revenue of $83.8 million, or adjusted revenue of $92.0 million, including the impact of realized hedges

* Net Income of $28.5 million, or Adjusted Net Income, (as defined below) of $10.5 million, a sequential decrease of $7.5 million from the first quarter of 2012, due to a 37% increase in DD&A, largely attributable to the April 2012 sale of Barnett Shale properties to Atlas

* EBITDA, (as defined below) of $69.3 million, comparable to the $70.2 million first quarter 2012 record

Test drive our video analysis and trade idea service for only $1.00

Production volumes during the three months ended June 30, 2012 were 2,393 Mboe, an increase of 82 Mboe, or 4%, from first quarter 2012 production of 2,311 Mboe. The 4% sequential increase in production from the first quarter of 2012 to the second quarter of 2012 was due to the contribution of new wells brought on during the quarter. Second quarter production growth would have been substantially higher had it not been impacted by the sale of Barnett Shale production to Atlas Resource Partners, L.P. ("Atlas") on May 1, 2012.

Read the entire Carrizo Oil and Gas earnings report

Get your free trend analysis for Carrizo Oil and Gas and get our Free Trading Videos, Lessons and eBook today!

Biodiesel demand Estimates Now Provided in Petroleum Supply and Demand Balances

Test drive our video analysis and trade idea service for only $1.00

Biodiesel production data were reported for the first time in U.S. and regional petroleum supply and disposition balances as published by the U.S. Energy Information Administration (EIA) in the Petroleum Supply Monthly (PSM) in May 2012. The biodiesel production data in the PSM will allow EIA to more completely account for biodiesel when calculating demand (measured as product supplied) for distillate fuel oil. Biodiesel production and other biodiesel data are now included in the item "Renewable Fuels Except Fuel Ethanol" in PSM supply and disposition tables.

In addition, previously published PSM data for January-April 2012 were revised to include biodiesel production. Similar revisions will be reported for 2011 when the Petroleum Supply Annual is released at the end of August 2012.



Product supplied is a widely followed measure of demand for petroleum products. For finished petroleum products (including distillate fuel oil), product supplied is calculated as the sum of production, imports, net receipts (only for regional data), and adjustments minus the sum of stock change, refinery and blender input, and exports. While not a measure of actual consumption, product supplied has proven to be a useful approximation of demand for petroleum products.

In the case of biodiesel, EIA assumes that any biodiesel that is produced is blended with diesel fuel, adding to the diesel fuel pool. This biodiesel production amount adds to the distillate fuel product supplied level, as shown on the graph. Including biodiesel production in the distillate fuel production volume added between 50 to 70 thousand barrels per day over the first five months of 2012.

Get our Free Trading Videos, Lessons and eBook today!

Chesapeake Energy Corporation Reports Financial and Operational Results for the 2012 Second Quarter

Chesapeake Energy Corporation (NYSE:CHK) today announced financial and operational results for the 2012 second quarter. For the 2012 second quarter, Chesapeake reported net income to common stockholders of $929 million ($1.29 per fully diluted common share), ebitda of $2.385 billion (defined as net income before income taxes, interest expense, and depreciation, depletion and amortization) and operating cash flow of $895 million (defined as cash flow from operating activities before changes in assets and liabilities) on revenue of $3.389 billion and production of 347 billion cubic feet of natural gas equivalent (bcfe).

The company’s 2012 second quarter results include various items that are typically not included in published estimates of the company’s financial results by certain securities analysts. Excluding such items for the 2012 second quarter, Chesapeake reported adjusted net income to common stockholders of $3 million ($0.06 per fully diluted common share) and adjusted ebitda of $803 million.

Test drive our video analysis and trade idea service for only $1.00

The primary excluded items from the 2012 second quarter reported results are a net after-tax gain on investments of $584 million, primarily related to the sale of all of the company’s interests in Access Midstream Partners, L.P. (NYSE:ACMP; formerly named Chesapeake Midstream Partners, L.P.), unrealized noncash after tax mark to market gains of $490 million resulting from the company’s oil, natural gas liquids (NGL) and natural gas and interest rate hedging programs and a noncash after tax charge of $148 million related to the impairment of certain of the company’s property and equipment.

A reconciliation of operating cash flow, ebitda, adjusted ebitda and adjusted net income to comparable financial measures calculated in accordance with generally accepted accounting principles is presented on pages 20 – 24 of this release.

Read the entire CHK earnings report

  Get our Free Trading Videos, Lessons and eBook today!

Kodiak Oil & Gas Corp. Reports Second Quarter 2012 Financial Results

Kodiak Oil & Gas Corp. (NYSE: KOG), an oil and gas exploration and production company with primary assets in the Williston Basin of North Dakota, today announced second quarter and first half 2012 financial results.

Q2 2012 Financial Results
For the quarter ended June 30, 2012, the Company reported oil and gas sales of $85.8 million, as compared to $22.1 million during the same period in 2011, a 288% increase. Kodiak reported an overall 385% increase in quarter over quarter equivalent sales volumes of 1.2 million barrels of oil equivalent (BOE) for the second quarter 2012, or an average of 12,696 BOE per day (BOE/d) during the second quarter 2012, as compared to 238 thousand BOE, or an average of 2,618 BOE/d in the same period in 2011. Crude oil revenue accounted for approximately 96% of oil and gas sales in the second quarter 2012.

Test drive our video analysis and trade idea service for only $1.00

For the second quarter 2012, the Company reported net income of $93.1 million, or $0.35 per basic and diluted share, compared with net income of $14.0 million, or $0.08 per basic and diluted share, for the same period in 2011. Net income for the second quarter 2012 includes an unrealized gain of $91.7 million related to the mark to market of derivative instruments used for commodity hedging and $25.9 million in deferred income tax expense. The net effect of the non cash hedging activities credit and non cash deferred income tax expense increased Kodiak's reported net income for the second quarter 2012 by $0.25 per basic and diluted share. Detailed disclosure of the Company's derivative contracts is available in its Filing on Form 10-Q for the quarter ended June 30, 2012.

Read the entire Kodiak earnings report and Get your free trend analysis for Kodiak Oil and Gas

Get our Free Trading Videos, Lessons and eBook today!

ONG: Crude Oil Weekly Technical Outlook For Sunday August 5th

We like to drop in on the staff at Oil N'Gold to see where they think crude oil is headed. And they are looking neutral at this point.....

Crude oil rebounded strongly late last week but upside is still limited below 92.94 short term top. Initial bias remains neutral and more consolidation cannot be ruled out. But after all, even in case of another decline, near term outlook remains bullish as long as 83.65 support holds. As noted before, decline from 110.55 should have finished at 77.28 already. Current rebound from there should extend and break of 92.94 will target 61.8% retracement at 97.84 and above.

Test drive our video analysis and trade idea service for only $1.00

In the bigger picture, price actions from 114.84 are viewed as a three wave consolidation pattern with fall from 110.55 as the third leg. Such decline could have finished earlier than we expected at 77.28. Sustained trading above 90 psychological level will bring stronger rally towards 114.83 resistance level. And break there will resumption whole up trend from 33.2. On the downside, another fall cannot be ruled out yet. But even in that case, strong support should be seen below 74.95 and above 61.8% retracement of 33.20 to 114.83 at 64.38 and bring another medium term rise.

In the long term picture, crude oil is in a long term consolidation pattern from 147.27, with first wave completed at 33.2. The corrective structure of the rise from 33.2 indicates that it's second wave of the consolidation pattern. While it could make another high above 114.83, we'd anticipate strong resistance ahead of 147.24 to bring reversal for the third leg of the consolidation pattern.

Get ONG's Nymex Crude Oil Continuous Contract 4 Hour, Daily, Weekly and Monthly Charts

Get our Free Trading Videos, Lessons and eBook today!

DeCarley Trading is Joining the Zaner Group

Test drive our video analysis and trade idea service for only $1.00

DeCarley Trading has announced that they have teamed up with the Zaner Group. With their new brokerage arrangement, they are able to offer the same great rates for both full service and discount online traders with the extraordinary service our brokerage clients have grown to expect!

For over 30 years, Zaner has provided brokerage services to traders worldwide in the futures, commodities, metals, currencies, energies and forex markets. We are confident the reliable clearing through various FCMs and top notch research offered by Zaner will be great assets to our clients.

Zaner is a member of the National Futures Association (NFA) and is registered with the Commodity Futures Trading Commission (CFTC). In addition, Zaner is a member of the National Introducing Brokers Association, Illinois Chamber of Commerce and has an A+ rating from the Better Business Bureau.

Visit DeCarley Trading.com to get all the details on opening an account.

And if you are new to commodities trading make sure to get a copy of DeCarley Tradings own Carley Garners book, A Trader's First Book on Commodities


Get our Free Trading Videos, Lessons and eBook today!

Phillips 66 Reports Second Quarter Earnings of $1.2 Billion or $1.86 Per Share

Test drive our video analysis and trade idea service for only $1.00

Phillips 66 (NYSE: PSX) announces second quarter earnings of $1.2 billion and adjusted earnings of $1.4 billion. This compares with earnings and adjusted earnings of $1.0 billion in the second quarter of 2011. In addition, Phillips 66’s Board of Directors has approved the repurchase of up to $1.0 billion of the company’s outstanding common shares.

“We’re off to a solid start, running well in a positive margin environment,” said Greg Garland, chairman and chief executive officer. “The location of our domestic refining, midstream and chemicals facilities enabled us to access advantaged feedstocks, creating strong earnings and cash flow. The announcement of our share repurchase plan is evidence of our commitment to strong and growing shareholder distributions.”

As previously announced, Phillips 66’s Board of Directors has declared a $0.20 per share dividend, which is payable in the third quarter.

Click here for the entire Phillips 66 earnings report

Get a "Free Trend Analysis" for PSX

Get our Free Trading Videos, Lessons and eBook today!

EOG Resources Reports Second Quarter 2012 Results, Increases 2012 Crude Oil Production Growth Target to 37 Percent

Test drive our video analysis and trade idea service for only $1.00

EOG Resources, Inc. (NYSE: EOG) today reported second quarter 2012 net income of $395.8 million, or $1.47 per share. This compares to second quarter 2011 net income of $295.6 million, or $1.10 per share.

Consistent with some analysts' practice of matching realizations to settlement months and making certain other adjustments in order to exclude one time items, adjusted non GAAP net income for the second quarter 2012 was $312.4 million, or $1.16 per share. Adjusted non GAAP net income for the second quarter 2011 was $299.2 million, or $1.11 per share.

The results for the second quarter 2012 included impairments of $1.5 million, net of tax ($0.01 per share) related to certain non-core North American assets, net gains on asset dispositions of $75.1 million, net of tax ($0.28 per share) and a previously disclosed non cash net gain of $188.4 million ($120.7 million after tax, or $0.45 per share) on the mark to market of financial commodity contracts. During the quarter, the net cash inflow related to financial commodity contracts was $173.2 million ($110.9 million after tax, or $0.41 per share). (Please refer to the attached tables for the reconciliation of adjusted non-GAAP net income to GAAP net income.)

With 86 percent of North American wellhead revenues currently derived from crude oil, condensate and natural gas liquids, EOG delivered strong earnings per share growth of 64 percent for the first half of 2012 compared to the same period in 2011. Discretionary cash flow increased 29 percent and adjusted EBITDAX rose 28 percent over the first half of 2011. (Please refer to the attached tables for the reconciliation of non-GAAP discretionary cash flow to net cash provided by operating activities (GAAP) and adjusted EBITDAX (non-GAAP) to income before interest expense and income taxes (GAAP).)

"EOG's financial and operating results get better and better. We are achieving this consistent string of home runs because EOG has captured the finest inventory of onshore crude oil assets in the entire United States and has the technical acumen to maximize reserve recoveries," said Mark G. Papa, Chairman and Chief Executive Officer. "EOG is the largest crude oil producer in the South Texas Eagle Ford and North Dakota Bakken with the sweet spot positions in both plays. In addition, we are uniquely positioned to market a significant portion of this crude oil at robust Brent type pricing through our own rail offloading facility at St. James, Louisiana, and to reach the Houston Gulf Coast market via the recently completed Enterprise Eagle Ford pipeline."

Read the entire EOG earnings report

Get our Free Trading Videos, Lessons and eBook today!