Commodity

Higher oil and natural gas prices have not overcome market volatility enough to help energy companies improve their rates of investment through 2010, according to a new study by Cambridge Energy Research Associates (CERA).

With higher commodity prices and a continued steady increase in its number of rigs in operation, Patterson-UTI Energy, Inc. expects to see improved revenue and earnings in 2003 over 2002. The company, the second-largest operator of land-based oil and gas drilling rigs in North America, announced Tuesday it had acquired seven new rigs to take advantage of the expanding market.

With higher commodity prices and a continued steady increase in its number of rigs in operation, Patterson-UTI Energy, Inc. expects to see improved revenue and earnings in 2003 over 2002. The company, the second-largest operator of land-based oil and gas drilling rigs in North America, announced Tuesday it had acquired seven new rigs to take advantage of the expanding market.

Oneok Inc. reported it has received a subpoena from the Commodity Futures Trading Commission (CFTC) for information related to certain trading transactions by energy and power marketing firms.

A committee at the New York Mercantile Exchange (NYMEX) is mulling draft rules for a new set of financially settled electricity contracts that will be linked to PJM Interconnection’s locational marginal prices (LMP).

Boise-based IDACORP, parent company of Idaho Power, disclosed that it is under investigation by the Commodity Futures Trading Commission for potentially engaging in round-trip or wash trading, which is designed primarily to boost trading volumes to create the appearance of a larger trading operation.

Boise-based IDACORP, parent company of Idaho Power, disclosed that it is under investigation by the Commodity Futures Trading Commission for potentially engaging in round-trip or wash trading, which is designed primarily to boost trading volumes to create the appearance of a larger trading operation.

Range Resources boosted its hedging position to take advantage of recent commodity price increases, locking in prices for two-thirds of its oil and gas production next year. All of the Company’s hedges are straight swaps entered into primarily with major financial institutions. “With approximately 75% of projected production from current projects hedged for the fourth quarter, and roughly two-thirds hedged for 2003 at attractive prices, we have greatly enhanced the predictability of our cash flow,” said Range President John H. Pinkerton. “To the extent futures prices maintain current levels or extend their gains, we will continue to pursue our policy of hedging 50-75% of anticipated production at least for 12-18 months.” The company has 97,842 MMBtu/d of gas production hedged for the fourth quarter at $4.08/MMBtu, 84,659 MMBtu/d hedged for 2003 at $3.95, 41,471 MMBtu/d hedged for 2004 at $3.92 and 9,932 MMBtu/d hedged in 2005 at $3.80. Range’s production comes primarily from the Permian Basin, as well as basins in the Midcontinent, Gulf Coast and Appalachian regions.

Range Resources boosted its hedging position to take advantage of recent commodity price increases, locking in prices for two-thirds of its oil and gas production next year. All of the Company’s hedges are straight swaps entered into primarily with major financial institutions.