Several exploration and production companies with significant exposure to various North American Shale Plays have sold off since the market peaked in June 2009. The market seems concerned about the lack of growth in the economy and the weak fundamental background for natural gas prices. This includes high storage levels, weak industrial demand and competition from Liquefied Natural Gas (LNG) from overseas.
Southwestern Energy (SWN) has 875,000 net acres in the Fayetteville Shale as of 3/31/2009, and has drilled and completed a total of 938 operated wells in the Fayetteville Shale. Southwestern Energy peaked at $45.65 in early June 2009, on the back of the strong rally in the overall market. It has since declined to $35.39, a 22% decline. Southwestern Energy's low price in 2009 was $25 reached in early March 2009.
Do you use technical analysis to find the proper entry point before you buy a stock? Click Here for a free Trend Analysis.