Boosts

With little fresh information on which to base their decisions, natural gas futures traders played it safe Friday in the abbreviated, pre-holiday-weekend session. Light short-covering in the early afternoon was only thing conspicuous in an otherwise featureless trading session. June finished at $6.119, up 8.4 cents for the session and just a few ticks short of the prior Friday’s $6.122 closing price.

Coming off of a turbulent week that saw its CEO resign unexpectedly, Anadarko Petroleum Corp. said last week that it has updated its first quarter 2003 financial guidance, increasing its earnings estimate to $1.35 per share (diluted) from $1.15 per share announced previously and its cash flow estimate to $3 per share from $2.60 per share.

Coming off of a turbulent week that saw its CEO resign unexpectedly, Anadarko Petroleum Corp. on Monday updated its first quarter 2003 financial guidance, increasing its earnings estimate to $1.35 per share (diluted) from $1.15 per share announced previously and its cash flow estimate to $3 per share from $2.60 per share.

Fourth quarter and year-end financial results for ConocoPhillips are good examples of how natural disasters and political turmoil can impact operations both for the long and short term. Newly merged major ConocoPhillips saw its earnings drop sharply because of natural disasters in the Gulf of Mexico and Alaska, and political unrest in Venezuela. Meanwhile, Unocal Corp.’s earnings were positively impacted by higher commodity prices and better-than-expected production.

Mirant’s liquidity position improved last week after it completed the sale of a one-third stake in the Shajiao C power plant in China to China Resources Power Holding Co. Ltd. for $300 million. Proceeds from the sale increased its liquidity to $1.4 billion and allowed Mirant to eliminate a $254 million loan at its Asian holding company.

Mirant’s liquidity position heading into 2003 was significantly strengthened after the Atlanta-based company on Tuesday said that it has completed the sale of the company’s 33% economic interest in the Shajiao C power plant in China to China Resources Power Holding Co. Ltd. for $300 million.

Despite softer natural gas futures and last week’s bearish weather forecasts for northern market areas this week, cash prices achieved moderate gains at nearly all points Monday. Most upticks ranged within 3-4 cents to either side of a dime, while flat to slightly lower numbers reigned in the Rockies.

Houston Exploration Co. said Monday it has hedged an additional 70,000 MMBtu/d of natural gas production for 2003, bringing its total gas production hedged for the year to 335,000 MMBtu/d.

Prices ranged from flat to mostly moderately higher Friday in all regions except the Rockies. They got some follow-through momentum from Thursday’s screen run-up following a below-expectations storage report, and traders also were looking ahead to the return of Northeast temperatures in the 90s as this week begins.