Basement

Continuing its basement-to-the-penthouse rise in the energy sector, North Dakota’s latest oil/gas production statistics make the state that had no drilling rigs operating in 1999 now the second biggest oil producer in the nation, trailing only Texas.

Within the last 52 weeks, shares of Cheniere Energy Inc. have been a basement dweller, trading as low as $3.17. However, Monday’s approval by FERC of the company’s plans to develop liquefied natural gas (LNG) export capability on the Gulf Coast sparked a rally Tuesday. The stock had been climbing of late as it has appeared increasingly likely that LNG export will happen.

“Bargain basement” severance taxes and a “dizzying array of exemptions and deductions” for the energy industry is costing Colorado a lot of money, according to a report by a nonprofit renewable energy group.

“Bargain basement” severance taxes and a “dizzying array of exemptions and deductions” for the energy industry is costing Colorado a lot of money, according to a report by a nonprofit renewable energy group.

With the June contract showing weakness in the Sunday overnight Access trading session, one might have expected that June’s $6.225 Access low might have left the basement door wide open for more exploration. That assumption would have been wrong Monday, as June natural gas rallied during the regular session to peak at $6.47 just prior to noon EDT.

After trading lower in the morning to stake out a $7.10 low Monday, April natural gas futures began to dig themselves out of the basement in the afternoon. The prompt month settled at $7.318, up 4.5 cents on the day and just 2.2 cents off the session’s high.

Xcel Energy subsidiary NRG Energy is fast approaching the basement of junk bond ratings levels. Standard & Poor’s (S&P) lowered its credit ratings to CCC from B-plus last Thursday due to NRG’s urgent need to sell off a massive number of power generation assets in order to meet a $1.3 billion collateral payment deadline of Sept. 13 or convince lenders it will be able to make the payments soon. S&P also lowered its credit rating on NRG Northeast Generating LLC’s bonds and NRG South Central Generating LLC’s bonds to CCC.

Longtime industry basement dweller Chesapeake Energy is finallypulling itself up by its bootstraps with a little help from the gasmarket and Gothic Energy. The company announced on Friday that itplans to buy Gothic, its frequent Midcontinent drilling partner, ina stock and cash transaction valued at about $345 million.

Longtime industry basement dweller Chesapeake Energy is finallypulling itself up by its bootstraps with a little help from the gasmarket and Gothic Energy. The company announced on Friday that itplans to buy Gothic, its frequent Midcontinent region drillingpartner, in a stock and cash transaction valued at about $345million.