Account

Taking into account strong gas futures prices despite thewarmest winter on record, a bleak supply picture and projections ofa very hot summer, PaineWebber reported an increase in its year2000 projection of composite spot gas prices from $2.40/MMBtu to$2.50/MMBtu. The firm’s report, issued yesterday, also indicatedthat the time is right to invest in diversified energy companies.

KN Energy’s Mark Kissel, director of account services, saidyesterday the major firm transportation deal signed between NaturalGas Pipeline Company of America and Aquila Energy earlier this weekhas a net present value for the pipeline of $31.16 million, which isguaranteed revenue and excludes revenue sharing above that level thatis based on several different pricing strategies. The contract covers150,000 MMBtu/d of firm capacity on NGPL’s Amarillo leg and 350,00MMBtu/d on NGPL’s Gulf leg for two years (see Daily GPI, Sept. 28).

Kerr-McGee Corp., taking into account the unfinished merger withOryx Energy (See Daily GPI, Oct. 16), revealed Friday a $545million capital budget for 1999. The merged company plans 1999daily production volumes at 190,000 barrels of oil and 580 MMcf ofgas.