Bleeding

While the losses continued last year at Reliant Resources, the company was able to slow the bleeding in the fourth quarter of 2003 to a loss of $29 million, or $0.10 per share, from continuing operations compared to a loss of $176 million, or $0.60 per share, for 4Q2002. Reliant reported net income of $32.5 million (11 cents/share) in the fourth quarter compared to a net loss of $648.6 million ($2.23/share) in 4Q2002.

While the losses continued last year at Reliant Resources, the company was able to slow the bleeding in the fourth quarter of 2003 to ($29 million), or ($0.10) per share, from continuing operations compared to ($176 million), or ($0.60) per share, for 4Q2002. Reliant reported net income of $32.5 million (11 cents/share) in the fourth quarter compared to a net loss of $648.6 million ($2.23/share) in 4Q2002.

Following a four-day, 45-cent price decline, bulls weresuccessful in stopping the bleeding yesterday as strong physicalprices gave way to an unexpected late short-covering rally. Cappingits tenure as prompt month in dramatic fashion, the Januarycontract expired yesterday at $2.344, up 7.3 cents on the day and ahalf-cent above where it debuted as spot month on Nov. 29.

Traders returned Monday from a long holiday weekend to find thecash market about as weak or even weaker than it had been prior toChristmas, depending upon the market area. A warming trend andsofter futures were cited as reasons. The Gulf Coast, last week’sbargain basement region for gas, was only dropping a nickel to adime. But Western points, which had been riding high on the basisof having the nation’s chilliest weather, fell anywhere from about20 cents (PG&E citygate) to as much as 50 cents (Stanfield).

The hemorrhaging of prices that marked the first two days oftrading in the December aftermarket came to a virtual standstillWednesday even as unseasonably warm weather continued in much ofthe nation east of the Rockies. Except for an increase of more thana dime into Northwest at Sumas, all points were either flat or upor down only a few pennies. The reason for the surge at Sumas andwhy it was handily outstripping Rockies prices was that distributorBC Gas in southern British Columbia was drawing more heavily thanusual on discretionary supplies, one source said.