Nymex gas has continued its decline since mid June, falling
another 4.4% in the past week. The
Marcellus was once again the weakest region.
Noble Energy (not to be confused with Noble Corporation, the
drillship lessor) reported earnings Thursday and the stock seems to have
reacted particularly badly. Noble has
one of the most premium valuations among the diversified large-cap
E&Ps. I have not listened to the
call, and am not familiar enough with Noble to understand why the stock reacted
poorly when they beat consensus. Their main areas of interest are in the Denver Joules Basin in Colorado, the WV/PA Marcellus, the US Gulf of Mexico, and the Eastern Mediterranean. Colorado has recently been the subject of a political battle between pro and anti fracking activists, and their Eastern Mediterranean assets are in Israeli waters, and so could be vulnerable to the ongoing turmoil over there.
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