Cents

R.W. Beck’s energy market consultants on Wednesday revised their 2004 natural gas price at Henry Hub upward 50 cents, or 10%, to $5.86/MMBtu because, they said, world events have driven up oil prices and kept an already tight gas market in over drive.

R.W. Beck’s energy market consultants on Wednesday revised their 2004 natural gas price at Henry Hub upward 50 cents, or 10%, to $5.86/MMBtu because, they said, world events have driven up oil prices and kept an already tight gas market in over drive.

Finding support in the low $4.60s area, October natural gas futures on Friday settled at $4.675, down 9.2 cents on the day. The sell-off appeared to be continuing unabated as traders heading into the weekend seemed unconcerned with the remote possibility that Hurricane Frances could knock out significant Gulf of Mexico production.

The share price for Aquila, Inc. common stock dropped 74 cents or 24% to $2.34 after the company announced Monday a public offering of 40 million shares of its common stock, and 12 million of premium income equity securities (PIES). The PIES represent $300,000,000 aggregate principal amount of convertible senior notes, which will mandatorily convert into common stock no later than Sept. 15, 2007.

A one-time income tax recovery, which inflated financial results in last year’s second quarter, sent Canadian Natural Resources Ltd.’s quarterly earnings this year plunging 51%, but the lower profit did not deter the Calgary-based producer from showing off strong growth in oil and natural gas production.

As anticipated, the previous day’s futures plunge of nearly 30 cents was reflected by overall softness in Tuesday’s cash market. But there was enough hot weather demand to distribute pockets of flat to higher prices here and there.

After dropping 18.1 cents on Monday, the natural gas futures prompt month on Tuesday chose to follow crude’s lead and probe the upside. With only a few days left until expiration, the July contract notched a 7.3-cent gain to close at $6.412. Action was light Tuesday, as 52,035 contracts changed hands.

Continuing the downward momentum from Friday, the July natural gas futures contract dropped 18.1 cents on Monday to close at $6.339. Rumors of a break from trading with crude futures appeared false for the time being, as July crude fell as well, closing $1.12 lower on the day at $37.63.

Playing a little bit of “give-and-take” on Thursday and Friday, the June natural gas futures contract met Thursday’s 7.5-cent run-up with a 7.9-cent drop in Friday trading. The prompt month closed Friday at $6.401, after trading between $6.38 and $6.48 with 53,838 contracts changing hands.