The energy marketplace, investors and credit analysts appeared to have little faith in Dynegy’s ability to turn its deteriorating financial picture around last week. The three credit ratings agencies cut the merchant not once but twice, the stock fell as low as 51 cents a share at one point, and counterparties were apparently ditching the company for safer ground. By Friday, buoyed by rumors that its subsidiary Illinois Power Co. may be close to being sold, optimism was up, albeit slightly, with more buyers than sellers — the price gained as much as 20 cents at midday.
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Bears in Control as Storage Draws Lower Than Expected
Besieged by a deteriorating fundamental picture in a market that is already firmly entrenched in a downtrend, natural gas futures traders pressured prices to new lows yesterday, amid a seemingly relentless barrage of selling activity. Even the season’s first triple-digit storage withdrawal (124 Bcf) failed to induce much of any buying sympathy, giving traders little choice but to continue to short the market. The February contract closed 19.7 cents lower at $2.268 and in doing so broke its previous all-time low at $2.415 notched back in February 1999.
January 4, 2002
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