Boost

Buoyed by private forecasts that cast doubt on governmentforecasts calling for a warm up, along with several constructivetechnical features, natural gas futures erupted higher yesterdaymorning as weak shorts exited their newly acquired positions. TheFebruary contract finished 77.7 cents higher on the day at $8.966after reaching a high at $9.189.

Adding to gains achieved in Tuesday night’s Access tradingsession, natural gas futures spiraled higher Wednesday as tradersprobed into uncharted price territory in reaction to anotherbullish storage report. Fueled by that buying pressure, theDecember contract finished 24.9 cents higher at $6.265, almost$2.00 above lows notched two weeks ago.

It’s been a long wait, but traders are finally seeing what theysaid was needed to spark a turnaround in a sagging gas market:genuinely substantial cold weather approaching a major market area.That and continued, albeit moderate, support from the Decemberfutures contract generated cash price increases Thursday rangingfrom a nickel or less in the Rockies and California to between anickel and about 15 cents in the Southwest, Gulf Coast,Midcontinent, Midwest and Appalachia.

Even with its natural gas production lagging by more than 100MMcf/d and oil production dropping by more than 15,000 b/d,Burlington Resources was still able to boost its net income from1999’s third quarter of $61 million ($.28 per share) to thisyear’s third quarter level of $200 million ($.93 per share) due torealized oil and gas prices rising 47% and 42% respectively fromlast year’s 3Q.

Houston’s Burlington Resources said last week that a tax benefitreinstated by the Federal Energy Regulatory Commission in Septemberwill raise the independent’s earnings in the third quarter by 14cents, beating analysts’ expectations.

Houston’s Burlington Resources said this week that a tax benefitreinstated by the Federal Energy Regulatory Commission in Septemberwill raise the independent’s earnings in the third quarter by 14cents, beating analysts’ expectations.

Amid concerns about the potential track of Hurricane Keith and with help from strong natural gas, crude oil and heating oil futures, cash prices emerged from a generally softer weekend to register widely varying gains at nearly all points Monday.

Mitchell Energy & Development Corp., which two weeks agoannounced it was increasing its capital budget nearly $50 millionmore this year, said it has completed two system expansion projectsin North Texas, boosting both natural gas sales and gas liquidsproduction.

The cash market remained bullish Tuesday despite flaggingsupport from energy futures. That was being replaced by moderateheating load starting to surface in northern market areas alongwith strong power generation demand and storage concerns in theWest.