Cents

New York City-based Consolidated Edison lowered its 2003 earnings guidance on Monday by 8 cents/share to a range of $2.82 to $2.97 a share in response to adjustments made because of a proposed public offering of 8.7 million common shares, which is expected to raise $345 million. The company’s previous forecast of 2003 earnings was $2.90 to $3.05/share.

The Energy Information Administration (EIA) tacked on another 46 cents/Mcf to its first quarter 2003 natural gas wellhead price forecast compared to last month’s edition of the Short-Term Energy Outlook. In the latest Outlook, EIA is expecting first quarter prices to average $4.16.

Duke Energy subsidiary Duke Power expects to take a one-time charge of $19 million, or 1 1/2 cents per share, in the fourth quarter as a result of a multi-million settlement with North and South Carolina resolving claims the power utility committed accounting irregularities and underreported profits between 1998 and 2000 to evade a rate decrease for electric customers in the states, top executives said last week.

After reaching the lowest levels since early March, the gas futures market got a boost last week from a smaller than expected storage injection and a downward revision to prior storage data on Thursday, which provided just enough steam for the September contract to end the week closer to its weekly high of $2.80 than Wednesday’s low of $2.64. However, September only managed to eke out a small 1.6-cent gain on Friday, ending the day at $2.761, just above its daily low of $2.755. Volume was light at 38,527, compared to 95,207 on Thursday.

If the projections of a leading industry analyst are correct, the robust prices of gas for fall delivery may be trading as much as 70 cents lower upon expiration, mainly because of the gas storage situation.

Prices fell about 10-20 cents across the board Thursday in what traders generally considered as “reality” catching up with the gas market. But one producer is expecting at least a mild rally today after the screen turned a negative morning into an afternoon settlement that was a little more than a nickel higher.

Buoyed by double-digit gains in the cash market, along with the release of another in a string of bullish long-range weather outlooks, natural gas futures erupted higher Tuesday, as traders pressured the market to new four-week highs. The November contract gapped a dime above Monday’s high, and never looked back yesterday, finishing with an impressive 21.4-cent advance and $2.592 closing price. Trading volume was high, with an estimated 90,649 contracts changing hands.

Due to a confluence of events, including ample natural gas storage supplies and the nation entering a recession, Ronald Barone of UBS Warburg said it should “come as no surprise” that the company has decided to lower its 2001 and 2002 natural gas spot price forecast. The analyst said he has lowered the 2001 projection of 12-region composite spot price to $3.80 from $4.10, compared to the current Street consensus of $4.00. UBS Warburg’s Henry Hub equivalent is $3.95.

Due to a confluence of events, including ample natural gas storage supplies and the nation entering a recession, Ronald Barone of UBS Warburg said it should “come as no surprise” that the company has decided to lower its 2001 and 2002 natural gas spot price forecast. The analyst said he has lowered the 2001 projection of 12-region composite spot price to $3.80 from $4.10, compared to the current Street consensus of $4.00. UBS Warburg’s Henry Hub equivalent is $3.95.