Despite

Despite an impressive bounce Thursday afternoon and strongerover-the-counter trades Friday morning, natural gas futures werehit with a second day of losses Friday as locals deposited themarket lower after finding an intermediate layer of resistance at$4.16. The July and August contracts moved lower in lockstep, eachshedding 2.1 cents to finish the week at $4.043 and $4.022respectively. Estimated volume was 82,698.

Despite 1999 production revenue increases of 51% and cash flow increases of 43%, Calgary-based Canadian 88 took a sharp hit to its bottom line by a natural gas forward sales contract, which resulted in the company posting a loss of $6.5 million ($0.06 per share). The company had reported earnings of $1.8 million ($0.02 per share) in 1998.

Despite 1999 production revenue increases of 51% and cash flowincreases of 43%, Calgary-based Canadian 88 took a sharp hit to itsbottom line by a natural gas forward sales contract, which resultedin the company posting a loss of $6.5 million ($0.06 per share).The company had reported earnings of $1.8 million ($0.02 per share)in 1998.

Despite moderating temperatures and tumbling electric prices,natural gas futures continued to climb yesterday, punching throughstubborn resistance amid new speculative length and renewedconcerns that storage inventories are too low. Easily outpacing itsprior life-of-contract high at $3.24, the June contract rallied13.4 cents higher to finish at $3.317. In doing so, futures reachedtheir highest mark by a spot contract since November 1997.

Despite current plans to reactivate LNG imports and expand the Cove Point LNG plant, Columbia Energy Group has decided the Lusby, MD-based facility does not fit into its core group of assets. The company announced plans last week to sell Cove Point and a related pipeline to Williams Gas Pipeline for $150 million. The sale is subject to clearance under the Hart-Scott-Rodino Act but should be completed by July 2000, the companies said.

Despite current plans to reactivate LNG imports and expand theCove Point LNG plant, Columbia Energy Group has decided the Lusby,MD-based facility does not fit into its core group of assets. Thecompany announced plans yesterday to sell the LNG facility andrelated pipeline to Williams Gas Pipeline for $150 million. Thesale is subject to clearance under the Hart-Scott-Rodino Act butshould be completed by July 2000, the companies said.

Despite the gas futures rally that pushed May prices to contracthighs of $3.087 last Thursday, Susannah Hardesty, president ofEnergy Research and Trading, still expects a higher spike nextmonth, possibly to $3.30 for the near-month contract, asnervousness over strong summer gas and power demand reaches thetrauma stage.

Despite a strong showing last Friday and gains seen in nearbyphysical market prices, natural gas futures moved lower after theopening bell yesterday and were never able to recover. The Maycontract was the hardest hit, dropping 5.6 cents to settle at$2.889. By comparison, the 12-month strip sank 3.2 cents to closeat $2.96. Estimated volume was modest, with 48,743 contractschanging hands.

Despite record drilling and high gas prices, Canadian producersstill are not managing to boost production. TransCanada Pipelinesestimates Alberta field receipts were 2% lower than expected thiswinter and ended up being essentially flat with the 12.4 Bcf/drecorded in winter 1998-99.