Quicksilver Resources (KWK) was the best performing stock with significant Barnett Shale exposure among the exploration and production companies in 2009. The company returned 169% in 2009 after beginning the year with some investors questioning its ability to survive due to lack of access to the credit markets.
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.
Quicksilver Resources (KWK) has 173,000 net acres under lease, and 1,650 locations to drill in the Barnett Shale. Quicksilver Resources peaked at $13.18 in early June 2009, on the back of the strong rally in the overall market. It has since declined to $8.33, a 35% decline. This is still far above its 52 week low of $3.75 per share 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.