after years of overseeing regular imports to Elba Island, El Paso, like dozens of other companies, is hoping to make the most of a U.S. supply glut by instead exporting LNG, which is natural gas cooled to a liquid for transport by tanker, to higher-paying markets across the globe.

“This would give us flexibility,” an El Paso spokesman said. “The terminal will be able to import as well as export.”

The application comes in the same week that two other export proposals were announced, one operated by Excelerate Energy off the U.S. Gulf Coast and another Shell-led proposal in western Canada.

The Elba Island application is for export to countries with which the United States has a free trade agreement. It will follow up with a second application for non-free trade agreement countries, it said.

It marks an about turn for El Paso which has invested heavily in import infrastructure in recent years, before a surge in U.S. shale gas production left that infrastructure largely unused.

Earlier this month, the company applied for an export license from its Gulf LNG import terminal in Pascagoula, Mississippi, which only began operations last June after taking years to build. Since starting up, the terminal has barely received a cargo.

Prolific production from U.S. shale deposits has led to record increases in U.S. natural gas output over the past year, flooding the market and pushing prices to ten-year lows near $2 per million British thermal units (mmBtu). The price of LNG in Asia, meanwhile, is above $18 per mmBtu.

now eleven projects across the U.S. — most of which were originally designed for import — are seeking export licenses. The rush to build export facilities echoes last decade’s scramble to build import terminals and is indicative of how fast the U.S. gas market has been turned on its head.

but the spate of new projects has raised concerns among consumer groups and politicians that export could push prices higher at home. so far, the proposed plants in the United States could together export about a quarter of U.S. daily production, though it is very unlikely that they will all get the go ahead.

The DoE has only approved one project — Cheniere Energy’s Sabine Pass plant in Louisiana — and has said it will consider the accumulative affect of exports when mulling other applications.

(Reporting by Edward McAllister; Editing by Alden Bentley and Marguerita Choy)

<a href="http://articles.chicagotribune.com/2012-05-18/news/sns-rt-us-lng-export-elpasobre84h0vg-20120518_1_import-terminal-export-shale-gas-productiontag:news.google.com,2005:cluster=http://articles.chicagotribune.com/2012-05-18/news/sns-rt-us-lng-export-elpasobre84h0vg-20120518_1_import-terminal-export-shale-gas-productionFri, 18 May 2012 19:13:29 GMT”>El Paso applies for LNG export license from Elba Island

Five-times champion Rafa Nadal wore down fellow Spaniard David Ferrer 7-6, 6-0 on Saturday to reach the final of the Rome Masters. the second seed came from 3-1 down to win the first set and then ran away with the second to set up a final against either world number one Novak Djokovic or number two Roger Federer.

Sixth seed Ferrer had the better of an 86-minute first set, but could not push home his advantage as Nadal won the tiebreak 8-6, before running away with the second.

]]> http://oilstockinvestment.com/after-slow-start-nadal-steps-on-gas/feed/ 0 http://oilstockinvestment.com/another-chance-for-stocks-to-bounce-back/ http://oilstockinvestment.com/another-chance-for-stocks-to-bounce-back/#comments Sun, 20 May 2012 09:59:14 +0000 admin http://oilstockinvestment.com/another-chance-for-stocks-to-bounce-back/

Stocks fell for a third straight day on Tuesday, with the Dow and S&P 500 giving up 0.5% each and the Nasdaq falling 0.3%. Oil and gold closed at their lowest levels of the year.

Stock-index futures are showing some life Wednesday, though, with Dow futures up about 60 points.Investors focused on continued failure by Greece’s political leaders to form a coalition government after nine days of trying. They’re worried about what new elections next month would mean for the region.  

Those concerns hammered oil prices. this morning, crude oil futures are trading below $93 a barrel, as a report showed U.S. crude supplies surged more than expected last week.  Inventories now sit at a 22-year high amid weak demand and growing production.  the Energy Department will update the numbers at 10:30 a.m. ET when it releases its latest supply data.

Gas prices have come down in sympathy; auto club Triple a puts the national average at $3.73 a gallon — down some 20 cents from last month.

But cheaper gas won’t be enough to get many more Americans on the road this summer; they’re still too worried about their jobs and the economy. Economists and tourism experts are expecting only a small uptick in summer travelers. For Memorial Day weekend, AAA predicts that 34.8 million Americans will take trips of at least 50 miles. That’s up 1.2% from last year’s summer opening when gas prices were just pennies shy of $4.

The cost of your morning buzz is also getting cheaper.  J.M. Smucker — maker of Folgers and packaged Dunkin Donuts coffee — is dropping prices by an average 6%. the move was long overdue, given the 45% drop in green coffee prices over the past year.

This is the second time since August that the largest U.S. coffee packager has dropped its list prices.  More roasters are expected to follow Smucker’s move, including Starbucks (SBUX) and Maxwell House maker Kraft (KFT), although they haven’t announced price cuts yet.

Social advertising may be considered ‘too trendy’ by some — that’s partly the thinking behind General Motors’ (GM) move to pull its paid Facebook ads.  

GM is the third-largest advertiser in the U.S. behind Procter & Gamble (PG) and AT&T (T).  It spent $1.1 billion on advertising in the U.S. last year, including about $40 million on Facebook.  

GM says those Facebook ads had low consumer impact. Its decision to drop Facebook is a vivid reminder that Facebook will have to work on its relationships with major advertisers and marketers.  

The social giant is expected to go public Friday amid high investor demand.

<a href="http://www.foxbusiness.com/markets/2012/05/16/another-chance-for-stocks-to-bounce-back/tag:news.google.com,2005:cluster=http://www.foxbusiness.com/markets/2012/05/16/another-chance-for-stocks-to-bounce-back/Wed, 16 May 2012 12:50:45 GMT”>Another Chance for Stocks to Bounce Back

THIS eye-pleasing city has plenty of popular tourist sites as well as a less famous but equally beguiling attraction, the 49 Mile Scenic Drive. this meandering route ties together many well-known landmarks — including Coit Tower, Fisherman's Wharf and the Golden Gate Bridge — while also venturing into areas seldom featured in travel guides.

Devised to promote the Golden Gate International Exposition of 1939-40, the scenic drive originally terminated at the exposition's fairgrounds on Treasure Island in San Francisco Bay. Today, the somewhat modified route is marked by signs featuring a sly-looking seagull, which peers down from lampposts across the city.

I'd been meaning to take the drive for nearly as long as I've lived here — some 20 years — but until recently I never got around to it. Procrastination was a factor, but it was also a matter of waiting for the right opportunity. such an occasion finally presented itself a few weeks ago in the form of a test car: an urban-oriented subcompact that could, in theory, complete the 49-mile loop on less than a gallon of gasoline.

The car was the 2012 Prius C, the newest, smallest and — with a base price of $19,710 — least expensive member of Toyota's expanding Prius family of hybrids. Aimed at young, budget-wary city dwellers, this more petite Prius (the C is for city) deploys Toyota's gas-electric drivetrain in a sporty-looking four-door hatchback.

On the face of it, a Prius C with a gallon in the tank should be able to handle the scenic drive with miles to spare: its city fuel economy rating is 53 miles per gallon. Toyota says its new hybrid baby has the “highest-rated city fuel economy of any vehicle without a plug.”

Still, I wondered how it would fare on an urban road course punctuated with preposterously steep hills and intermittently horrendous traffic, as well as some less congested stretches of curves and twisties that encourage the right foot to explore its primitive urges.

Unlike its larger sibling, the familiar hybrid now called the Prius Liftback, which has the aesthetic appeal of a slug on wheels, the Prius C is an attractive little car. Where the Prius Liftback is all monolithic planar mass, the Prius C is all curves and flares and bulges. and while the Liftback's top-heavy look suggests a predilection for straight-line travel, the C's wide, low-slung, wheels-to-the-corners stance hints at a penchant for playing.

The sense of sportiness continues indoors. the front seats are firm and assertively bolstered, with excellent lumbar support. the thick-rim, flat-bottom steering wheel has easy-to-reach thumb pads for the radio, navigation and climate controls, and for toggling among the hybrid information displays.

The dashboard, clad in handsome plastics, is pleasingly spare and uncluttered. the test car, outfitted at the top trim level (the so-called Prius C Four, with a sticker price of $25,140) featured a touch screen with audio and navigation controls as well as the Entune interface for smartphones.

After examining a map of the 49 Mile Scenic Drive, I chose a starting point: an Inner Sunset gas station, where I would fill the tank before and after. Like all Prii, the C displays trip fuel economy to tenths of a gallon, but I would take a redundant measurement. In the interest of staying on course, I enlisted my wife as navigator in chief, and on a partly sunny, partly foggy, altogether typical San Francisco morning, we set off.

After filling up with regular-grade 87 octane at Seventh Avenue and Lincoln Way and clicking the hybrid system into Eco mode to hedge our bets — it slows the throttle opening and dials back the air-conditioner — we made our way toward Twin Peaks.

At an elevation of 922 feet, it is San Francisco's second-highest point (after Mount Davidson, not far to the southwest). the road that winds to the top offers panoramic views, and for the skittish, an unnerving proximity to many long, steep drop-offs.

Happily, the car's handling lived up to its looks, its suspension (MacPherson struts in front and torsion beam in the rear) dispatching curve after precipitous curve with sure-footed confidence — no trace of jitters or notable body roll.

The C's road-holding ability is aided, no doubt, by the placement of its battery pack: it sits beneath the rear seats for a fairly low center of gravity.

Although the C is almost 20 inches shorter than the Liftback, its width and height are nearly identical to the bigger car's. the rear seats are more cozy, but for a subcompact the cabin feels spacious. Getting in and out is a breeze, a plus when scenic overlooks beckoned.

After a brief stop at the Twin Peaks lookout, where the test car, in a shimmering blue called Summer Rain Metallic, generated a fair amount of chatter from a gaggle of tourists, we headed back down to the bustle of the city. the long, steep grade offered an opportunity to move the shifter to “B” — for braking — putting the hybrid drive system into a mode that enhances the car's regenerative energy gathering, banking electrons in the nickel-metal-hydride battery for later use.

The shifter for the continuously variable transmission, by the way, is not the stubby dash-mounted flipper of the Liftback, but a conventional looking lever set into the console between the seats.

On the convoluted streets of Ashbury Heights and the Upper Castro, the Prius C felt decidedly nimble, partly owing to the test car's optional 16-inch alloy wheels, which come with a quicker steering ratio, and the electric power steering system's surprisingly convincing simulation of tactile feedback. Steering on the 2012 Prius Liftback, by comparison, feels weirdly abstract, and in a way illustrates a certain metaphysical difference between the two cars.

At the wheel of the Liftback, I could never quite shake the uncanny sensation that it was driving me, rather than the other way around, that I was merely there to help it achieve its uncompromising mission of maximum m.p.g.

The Prius C, on the other hand, despite an identical degree of technical sophistication, never left me feeling like anything less than an equal partner in our brief automotive marriage.

From Ashbury Heights, the route swooped down through the Mission District, then east toward Mission Bay, an area in transition from industrial grit to biotech sparkle. on a section of road under construction, the taut suspension did an admirable job of soaking up bumps while extending an invitation to the sport of slaloming around them.

From Mission Bay, the route zinged over to the Embarcadero, where the driver and navigator stopped at a Ferry Building diner to refuel on veggie burgers and consult the map.

Hunger sated, we set off at a brisker pace, as, two hours into the escapade we still had 38 miles to go. Even in Eco mode, the car has plenty of around-town oomph, not just from its relatively low-torque Atkinson-cycle gasoline engine — rated at 99 horsepower and 82 pound-feet — but also from the 45-kilowatt electric motor that kicks in extra boost.

Toyota states that acceleration to 60 m.p.h. from a standstill takes 11.5 seconds, a leisurely pace. Speed limit signs along the route prevented verification of this number. but like its siblings, the Prius C tends to shift one's perception of performance from a measure of brute force to one of calculated frugality, to the extent that being smoked by a minivan doesn't pose a threat to the ego.

The rest of the trip was a blur of starts and stops for photo ops, from SoMa to Japantown, Union Square to Chinatown, North Beach, Fisherman's Wharf and the Marina. After a dash through the Presidio to the Pacific, our tour culminated in a winding warmdown run through Golden Gate Park.

As we pulled back into our designated filling station, I tapped the steering-wheel-mounted thumb pad to summon the trip odometer, which claimed that in the course of traversing 49.1 miles of San Francisco streets, the Prius C had achieved no less than 53.7 m.p.g.

To test the computer's math, I refilled the tank using the same pump and nozzle, its handle hooked to the same notch.

The pump shut itself off at 0.858 gallons, which when subjected to some rudimentary algebra, yielded a fuel economy figure of 57.2 miles per gallon.

However you cut it, 53.7 m.p.g. or 57.2 m.p.g. or something in between is quite an achievement. doing it at a price within striking range of a Ford Fiesta or a Honda Fit is another thing entirely.

INSIDE TRACK: more cute, less filling.

<a href="http://www.post-gazette.com/stories/business/auto-news/on-the-streets-of-san-francisco-with-a-gallon-of-gas-to-go-636628/tag:news.google.com,2005:cluster=http://www.post-gazette.com/stories/business/auto-news/on-the-streets-of-san-francisco-with-a-gallon-of-gas-to-go-636628/Sat, 19 May 2012 17:04:55 GMT”>On the Streets of San Francisco With a Gallon of Gas to Go

Despite ongoing economic upheavals disrupting demand levels, CSX Corporation (CSX – Analyst Report) continues to post strong year-over-year growth backed by a favorable pricing momentum. we remain positive on the company’s growth opportunities, pricing power and operating efficiency. we believe that CSX Corp. is among the best positioned rails to benefit from the favorable industry fundamentals.  Market share gains on truck, new business in intermodal, effective cost controls and higher yield in the non-coal businesses remain primary catalysts for an earnings upside.

however, stiff competition, increased railroad regulation, highly unionized labor and uncertain market conditions for some of its product lines may limit the upside potential of the company.

over the past year, CSX has significantly benefited from positive rail industry pricing and operational improvement that drove its earnings and margin growth. as a result, the company expects to deliver earnings per share growth of 20% till 2015 along with achieving operating ratio target of 65% within 2015.  we expect improving market fundamentals, improved cost control measures and service levels will aid the company in producing these strong bottom-line results.

we remain optimistic on accelerated growth in the company’s major segments, namely Intermodal and Merchandize. Despite a slowing macroeconomic environment, we expect Intermodal to register double-digit growth on the back of tight truckload capacity.  Further, the Merchandise segment is expected to fuel growth with higher volumes in phosphates and fertilizers. Industrial shipments are expected to remain strong driven by growth in Automotive and Metals products. Oil and gas related growth will aid Metals and chemicals shipments. The construction sector is expected to improve driven by recovery in multi-family housing.

going forward, we expect coal volumes to remain strong with higher utility coal exports, mostly to Asian and European markets. Many developing countries are in the process of building electricity grids that is resulting in more utility coal demand. in 2013, the Energy Information Administration (EIA) projects that electricity generation from coal will increase 7%, as coal prices moderate while natural gas prices increase, due to which utility coal is expected to regain some share. EIA also projects that the share of coal in the U.S. electricity generation is expected to increase 40.9% in fiscal 2012 from the estimated 39.3% in fiscal 2012.

however, the current market conditions in utility coal also remain unfavorable for the company in the near term. Given the low prices of natural gas, declining demand for thermal coal for electricity generation in the domestic market and higher stockpiles, lower shipments of utility coal will remain headwinds for the company in the near term.

moreover, the company faces significant competition from various transportation providers including railroads like NorfolkSouthern (NSC – Analyst Report) and Union Pacific Corporation (UNP – Analyst Report) along with motor carriers that operate similar routes across its service area and, to a less significant extent, barges, ships and pipelines. Further, increased railroad regulation, highly unionized labor and softness in construction-related markets affecting Merchandize business may impede growth potential for the company in the future.

consequently, we maintain our long-term Neutral rating on CSX Corporation, supported by a Zacks # 3 Rank (Hold).

Read the full analyst report on CSX

Read the full analyst report on UNP

Read the full analyst report on NSC

<a href="http://www.zacks.com/stock/news/75487/continued-cautious-outlook-on-csxtag:news.google.com,2005:cluster=http://www.zacks.com/stock/news/75487/continued-cautious-outlook-on-csxFri, 18 May 2012 22:09:59 GMT”>Continued Cautious Outlook on CSX

Southwestern Energy co (NYSE:SWN) shares were trading at $29.11 while reporting up 0.76% from yesterdays close.

The 24 analysts offering 12-month price forecasts for Southwestern Energy co have a median target of 35.50, with a high estimate of 63.00 and a low estimate of 23.00. The median estimate represents a +21.95% increase from the last price of 29.11.

The current consensus among 31 polled investment analysts is to Hold stock in Southwestern Energy co. This rating has held steady since may, when it was unchanged from a Hold rating.

Analyst forecasts for current quarter earnings per share estimate are $0.28.

Analyst forecasts for current quarter sales estimate are share are $549.0M

For some big firms, a 100-year old company would seem like an old dog that takes an eternity to learn new tricks. However, this is not the case with Cabot Oil & Gas (COG). Cabot is all about not only learning new ways to conduct business, but the company acts quickly, taking advantage of great opportunities.

Unlike competitors Anadarko Petroleum (APC), Chevron (CVX), and Chesapeake Energy (CHK), Cabot does not fear change. after presenting gains of 100% last year, even with much lower natural gas prices, the company steams full throttle ahead seeking new plays for oil and liquids while maintaining a supply of natural gas awaiting rising prices. because of the way this fearless giant embraces change, I believe this to be a company that will be profitable for the long-term investor.

Cabot, with headquarters in Houston, Texas, is a leading independent natural gas producer, but has been making headway in the oil drilling game. The company continues production of natural gas even with the decline in pricing. last month the company began free-flowing Marcellus gas in the Zick area that represents a 7-mile step-out to the east from the nearest production. For 20 days straight, five wells averaged 78 million cubic feet (Mmcf) per day.

CEO, Chairman, and President, Dan O. Dinges stated, “The results of these wells have de-risked another substantial portion of our acreage position in Susquehanna. If there was concern about the productivity of our eastern acreage, those concerns should be mitigated. The five wells were completed in 92 frac stages and will have additional productive capacity once compression is operational.” In addition, volume of natural gas production increased by 83% mainly from production in the Appalachia regions.

The company is reeling in the profits by focusing on plays that produce the most in energy products. Cabot recently drilled and completed two wells spaced 400 feet apart, compared with the original spacing of 1,000 to 1,200 feet, at the Eagle Ford Shale where the company has 61,000 net acres of exposure. The company reported that the 24-hour production rate of these wells was better than average for the area. In the Marmaton play in Oklahoma, and Texas, the company has exposure to both oil and liquids.

This is also where one of Cabot’s competitors, SM Energy (SM) is also developing with approximately 35,000 net acres exposure. One of Cabot’s Marmaton wells had a peak production rate of 1,470 barrels of oil equivalent per day, with oil and liquids content of 87%. In the play running through Louisiana, Arkansas, and Mississippi, known as Brown Dense or Smackover play, Southwestern Energy (SWN), with about 520,000 net acres, and Devon Energy (DVN) have both recently drilled their first well.

Cabot is at an early stage there with its first well producing at a rate of 206 barrels per day. The company is also expected to participate with Range Resources (RRC) in a Utica/Point Pleasant test well in northwestern Pennsylvania, where the company has 50,000 net acres in the play as a result of deep rights retained in an asset sale in 1997.

For first-quarter 2012 results, the company posted net income of $18.3 million, or $0.09 per share, cash flow from operations of $131.8 million and discretionary cash flow of $138.5 million for the first quarter of 2012 compared with 2011 first quarter when the company reported net income of $12.9 million, or $0.06 per share, cash flow from operations of $91.2 million and discretionary cash flow of $112.3 million. First-quarter 2012 net income was $28.5 million, or $0.14 per share, compared with $20.7 million, or $0.10 per share, in first-quarter 2011. Additionally, Cabot’s Board of Directors declared a regular dividend of two cents ($0.02) per share on the company’s common stock.

Cabot’s revenue has risen for the last four quarters, increasing 23.6% to $268 million in the fourth quarter of the last fiscal year. This figure rose 19.6% in the third quarter of the last fiscal year from the year earlier and climbed 23.1% in the second quarter of the last fiscal year from the year-ago quarter. last quarter’s profit increase comes after net income dropped in the previous quarter, and in the fourth quarter of the last fiscal year, net income declined 46.3% to $26.4 million.

Production during the first quarter 2012 was 59.7 Bcfe, (58% increase) with 56.4 Bcf of natural gas production (55% increase) and 538 thousand barrels of liquids production (138% increase), the strongest ever reported. The company continues to shine even with natural gas prices down 22%t to $3.65 per Mcf in first quarter 2012. Dinges said in a statement in regards to the quarter results that, “Even with the significant reduction in realized natural gas prices between first quarters, we were able to grow oil and gas revenue by 36% as a result of our record production growth. These results highlight how efforts in each of our areas of focus continue to generate positive momentum. Fortunately, we have the assets, the balance sheet, and the operational ability to weather this cycle and still be opportunistic in order to generate value over the long-term.”

The company expects the share of liquids production to grow and reach 10% of total production in 2012, and it plans to spend 40% of its $750 million to $790 million 2012 capital budget on oil and liquids areas.

It is easy to see that this is a company bent on not just surviving at all costs, but thriving through adversity. because of improved production, higher realized oil prices and lower per-unit costs, Cabot keeps on reporting good quarterly results and will continue to do so based on its tremendous track record. Cabot is currently hovering around the $33 mark. I expect the stock to climb above $45 by the end of 2013 and higher in coming years. Based on the above information, I think this stock makes for an excellent long-term play.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Review: Cabot: This Oil And Gas King Could Jump $10 By 2014

Among benchmarks tracking the energy sector, the NYSE Arca Natural Gas Index (XX:XNG) fell 0.3%, while the NYSE Arca Oil Index (XX:XOI) dropped 0.6% and the Philadelphia Oil Service Index (US:SOX) moved lower by 1.1%.

Energy stocks lose ground for the week, again

Tracking a drop in crude oil prices to their lowest levels in about six months, energy stocks wrapped up the week in the red.

Losses in the broad equities market over European debt woes also impacted energy stocks.

The NYSE Arca Oil Index closed Friday at 1,103, well below its closing point of 1,161 on may 11.

The NYSE Arca Natural Gas Index ended Friday’s trade at 586, down from its ending level of 624 last week.

The Philadelphia Oil Service Index closed at 200 on Friday, down from 216 a week ago.

Chevron weighs, energy stocks drag

NEW YORK, NY, May 18, 2012 (MARKETWIRE via COMTEX) –Oil stocks have fallen along with sliding oil prices recently. TheSPDR S&P Oil & Gas Exploration & Production ETF (XOP) has droppednearly 8 percent in the last month. Earlier this week benchmark U.S.crude prices hit a seven-month low of $91.81 and could fall furtheras a result rising inventories and economic uncertainty in Europe.five Star Equities examines the outlook for companies in the Oil &Gas Industry and provides equity research on Magnum Hunter ResourcesCorp. /quotes/zigman/560436/quotes/nls/mhr MHR +1.06% and Dejour Energy Inc. /quotes/zigman/4518506/quotes/nls/dej DEJ -0.94% .

Access to the full company reports can be foundat:

www.FiveStarEquities.com/MHR www.FiveStarEquities.com/DEJ

according to a recent article on Bloomberg U.S. crude stockpiles haverisen to their highest levels in 21 years. The Energy InformationAdministration (EIA), in its weekly report Wednesday, stated thatcrude supplies grew by 2.1 million barrels to climb to 381.6 millionbarrels. Fears of the euro zone crisis and U.S. sanctions on oilimports from Iran have propelled OPEC producers, primarily SaudiArabia, to boost oil productions. Weakening global demand has givenimporting countries the opportunity to stockpile inventories.

five Star Equities releases regular market updates on the Oil & GasIndustry so investors can stay ahead of the crowd and make the bestinvestment decisions to maximize their returns. Take a few minutes toregister with us free at www.FiveStarEquities.com and get exclusiveaccess to our numerous stock reports and industry newsletters.

Magnum Hunter Resources are a Houston, Texas based independentexploration and production company engaged in the acquisition,development and production of crude, natural gas and natural gasliquids, primarily in the states of West Virginia, Kentucky, Ohio,Texas, North Dakota and Saskatchewan, Canada. The company recentlyreported an increase in total revenues of 293% to $57.2 million forthe three months ended March 31, 2012 compared to $14.5 million forthe three months ended March 31, 2011.

Dejour Energy is an independent oil and natural gas exploration andproduction company operating projects in North America’s PiceanceBasin (approximately 100,000 net acres) and Peace River Arch regions(approximately 11,000 net acres). The Company’s net loss for thecurrent quarter was $354,000 or $0.003 per share, compared to a netloss of $2,079,000 or $0.018 per share for the same quarter in 2011.

five Star Equities provides Market Research focused on equities thatoffer growth opportunities, value, and strong potential return. Westrive to provide the most up-to-date market activities. Weconstantly create research reports and newsletters for our members.five Star Equities has not been compensated by any of theabove-mentioned companies. We act as an independent research portaland are aware that all investment entails inherent risks. Please viewthe full disclaimer at: www.FiveStarEquities.com/disclaimer

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U.S. Crude Stockpiles Rise to Their Highest Levels in 21 Years

we are maintaining our long-term Neutral recommendation on Comstock Resources inc. (CRK – Analyst Report), supported by a Zacks #3 Rank (short-term Hold rating).

Frisco, Texas-based Comstock is an independent oil and gas exploration and production company engaged in the acquisition, exploration and development of oil and gas properties. the company’s operations are concentrated primarily in two regions in the U.S. namely East Texas/North Louisiana and South Texas.

we appreciate the company’s strategy of growing its reserve base through balanced acquisitions, as well as through development and exploration programs. This has been supplemented by successful drilling activities, which expanded the company’s proved reserve base by 25% as Comstock added 228 Bcfe of proved reserves in 2011.

the company’s strong acreage position in the prolific Haynesville/ Bossier Shale play (82,000 net acres with a resource potential of 7.3 trillion cubic feet equivalent) in the East Texas and North Louisiana region provides attractive reserve-add and production growth prospects.

we also believe that the recent acquisition of a sizeable acreage in the Delaware Basin in West Texas from Eagle Oil & Gas Co. will offer Comstock a low risk oil-focused production growth opportunity and drive its overall volumes.

however, our optimism about Comstock is somewhat dampened by the disappointing first quarter 2012 performance. the company reported adjusted loss per share of 30 cents in the quarter, wider than the Zacks Consensus Estimate of a loss of 17 cents. Comstock’s performance also deteriorated considerably from the year-ago adjusted loss of 10 cents per share.

Moreover, Comstock’s high natural gas exposure raises its sensitivity to gas price fluctuations, compared to its more-diversified independent peers with a balanced oil/gas production profile. the company, which derives more than 85% of its reserves/production from natural gas, has seen its sales and income drop drastically in recent quarters on the heels of a sharp drop in gas prices.

Being a relatively small player, Comstock lacks the financial resources of larger industry giants such as Encana Corp. (ECA – Analyst Report) and Chesapeake Energy Corporation (CHK – Analyst Report). as such, during periods of prolonged credit crunch, the company is forced to spend within its internal cash generation. This may prove detrimental to its growth plans.

hence, we see limited upside potential for Comstock from current levels and advise investors to hold on the stock.

Read the full analyst report on CRK

Read the full analyst report on CHK

Read the full analyst report on ECA

<a href="http://www.zacks.com/stock/news/75488/comstock-stays-neutraltag:news.google.com,2005:cluster=http://www.zacks.com/stock/news/75488/comstock-stays-neutralFri, 18 May 2012 22:26:33 GMT”>Comstock Stays Neutral

MADRID (MarketWatch) — European stock markets rebounded in afternoon trade on Wednesday, paring losses as luxury-goods maker Compagnie Financiere Richemont SA (CH:cfr) rose nearly 10% on results, igniting the sector. Oil stocks also moved higher, with Total SA (FR:fp)(US:tot) up 2.7% as crude prices also pared losses. The Stoxx Europe 600 index (XX:sxxp) traded flat at 245.55, versus a loss of over 1% earlier. The French CAC 40 index (FR:px1) rose nearly 1% to 3,067.96 and the German DAX 30 index (DX:dax) was flat at 6,404.20. The Portugal PSI 20 index and the Athens General Index (GR:gd), each stayed weaker, off 1.2% and 1%, respectively. The FTSE 100 index (UK:ukx) fell 0.1% to 5,432.78.

<a href="http://articles.marketwatch.com/2012-05-16/markets/31717029_1_europe-stocks-french-cac-oil-stockstag:news.google.com,2005:cluster=http://articles.marketwatch.com/2012-05-16/markets/31717029_1_europe-stocks-french-cac-oil-stocksWed, 16 May 2012 13:04:25 GMT”>Europe stocks pare losses in afternoon trade