Adjusted

July natural gas continued to trudge lower Tuesday as traders adjusted to moderation in near-term weather forecasts and cited aggressive selling attempting to trigger standing sell orders. At the close July had fallen 6.5 cents to $4.581 and August dropped 6.5 cents as well to $4.613. July crude oil rebounded $2.07 to $99.37/bbl.

Two big-ticket acquisitions in the Fayetteville Shale by BHP Billiton Petroleum and XTO Energy Inc. suggest that the pace of development in the play will be accelerating, acknowledged Steve Mueller, CEO of Fayetteville veteran Southwestern Energy Co. But his company can hold its own, having locked in some of its costs and beaten down drilling times, Mueller said.

In recognition of the “value gap” between oil and natural gas prices, Chesapeake Energy Corp. will continue to direct a big chunk of its technological and leasehold acquisition expertise to “identify, secure and commercialize” new unconventional liquids-rich plays, CEO Aubrey McClendon said Wednesday.

Marathon Oil Corp., which has announced plans to spin off its integrated assets and become a stand-alone explorer, on Wednesday said it plans to increase its capital spending in 2011 to develop existing projects and exploit new resources, including onshore in North America.

February natural gas futures eked out a small gain Wednesday as traders adjusted positions ahead of options expiration. At the close February rose 1.8 cents to $4.491 and March added 1.1 cents to $4.501. March crude oil jumped $1.14 to $87.35/bbl.

January natural gas futures fell hard Monday as weather forecasts were adjusted to a slightly warmer outlook, and the Energy Information Administration (EIA) released higher production figures. At the end of the day January futures were down 18.9 cents to $4.210, and February had skidded 17.8 cents to $4.234. January crude oil surged $1.97 to $85.73/bbl.

BP plc on Tuesday beat Wall Street’s earnings expectations in 1Q2010 by more than doubling adjusted profits from a year ago, but the positive news was overwhelmed by the company’s Gulf of Mexico oil spill, which threatens to cut into future operational performance for months to come.

BP plc on Tuesday beat Wall Street’s earnings expectations in 1Q2010 by more than doubling adjusted profits from a year ago, but the positive news was overwhelmed by the company’s Gulf of Mexico oil spill, which threatens to cut into future operational performance for months to come.

Gateway Energy Corp. has acquired the Hickory Creek Gathering System from Hickory Creek Gathering LP and Range Texas Production LLC for $3.9 million in cash, adjusted to reflect a transaction effective date of Nov. 1, 2009. The system is in Denton County, TX, in the core of the Barnett Shale and currently services two significant producers, Gateway said. There are 15 producing wells connected to the system with throughput of approximately 11,000 MMBtu/d at a fixed gathering fee. The producers have also identified up to 18 additional drilling locations within dedicated leases for future development. Based on projected 2010 production, Gateway expects the system to increase its revenue in 2010 by approximately $772,000, assuming no additional wells are placed on the system during 2010. “We plan to use the Hickory Creek Gathering System as the base from which we can pursue organic growth opportunities with our current and neighboring producers, as well as to pursue additional acquisition opportunities in the Barnett Shale,” said Gateway CEO Robert Panico. Gateway owns and operates natural gas gathering, transportation and distribution systems in Texas, Texas state waters and in federal waters of the Gulf of Mexico off the Texas and Louisiana coasts.