Conditions

Ignoring moderating weather conditions and softer energy futures, the cash market managed generally moderate gains at a majority of points Wednesday, with San Juan and Rockies prices seeing the largest advances. Several flat to slightly lower points were scattered among the price mix.

The $15 billion merger of Conoco Inc. and Phillips Petroleum Co. was approved 5-0 by the Federal Trade Commission (FTC) on Friday, with conditions that the companies sell off assets in certain regions to maintain competition in the energy market. The merger creates the world’s sixth largest oil and gas major, based on reserves. Shareholders of both companies approved the deal earlier this year (see Daily GPI, March 13).

The $15 billion merger of Conoco Inc. and Phillips Petroleum Co. was approved 5-0 by the Federal Trade Commission (FTC) on Friday, with conditions that the companies sell off assets in certain regions to maintain competition in the energy market. The merger creates the world’s sixth largest oil and gas major, based on reserves. Shareholders of both companies approved the deal earlier this year (see NGI, March 18).

Sonat said Friday that based on system conditions and projected demand, it did not expect to implement an OFO Type 3 or Type 22 through Tuesday. “However, current forecasts show cold temperatures through the end of next week. We also expect an increase in load for the start of the gas day” Jan. 2, the pipeline continued, urging shippers to keep their after-hours contacts up to date in case an OFO became necessary to protect the system’s operational integrity. A hotline for OFO and system status updates is available at (800) 315-0575.

With little to no change in fundamental conditions and energy futures continuing to point downward, the cash market saw no reason to vary Wednesday from Tuesday’s precedent of mostly moderate declines. General price movement was more homogenized across regions yesterday, as drops of about a nickel to 20 cents or so characterized the softening for all but a few points.

Senate Majority Leader Tom Daschle (D-SD) indicated Friday that he will allow a vote on oil and natural gas drilling in the Arctic National Wildlife Refuge (ANWR) if the Senate gets behind a measure to build a long-line gas pipeline from Alaska to the Lower 48 states.

Based on current operating conditions and future prices for coal and natural gas, CONSOL Energy CEO J. Brett Harvey told investors last Thursday at the Friedman Billings Ramsey 8th Annual Investor Conference in Washington, DC, that he expects the company to earn approximately $0.50/share for the six-month period ending Dec. 31, which falls $0.34/share short of Wall Street estimates of $0.84/share for the six-month transition period.

Based on current operating conditions and future prices for coal and natural gas, CONSOL Energy CEO J. Brett Harvey told investors Thursday at the Friedman Billings Ramsey 8th Annual Investor Conference in Washington, DC, that he expects the company to earn about 2 cents/share below Wall Street estimates of $0.52/share for the six-month transition period ending Dec. 31.

Florida Gas Transmission discontinued an Overage Alert Day notice Wednesday, saying total linepack and operating conditions had improved.