Expectations

Despite forecasts calling for moderating temperatures this week, natural gas futures were higher Friday after traders were once again unsuccessful punching prices beneath what has become a very tough level of support in the $2.90-95 area. With that the September contract was treated to its highest closing price in more than a week, settling 8.4 cents higher at $3.04. Estimated volume was extremely weak, as only 40,115 contracts were estimated to have changed hands.

Cincinnati-based Cinergy Corp. said that next year’s profitsmight exceed expectations because of its growth from the purchaseof power plants. Cinergy now expects earnings per share for 2000 tohit the consensus estimates of $2.55, however next year, thecompany expects to grow 8% through merchant purchases.

U.S. land drillers and rig manufacturers will benefit the mostin the next year as the nation’s rig count continues to outpaceexpectations, according to a research report released Monday byRaymond James & Associates. And even though the seismicbusiness has recently lagged, it also holds excellent earningsprospects for the future, said the analysts.

Third quarter earnings for the three largest U.S. oil companies— ExxonMobil, Chevron and Texaco — handily surpassed analysts’expectations on the wave of surging oil and gas prices. ExxonMobilbeat predictions by six cents, Texaco beat the estimates by 12cents and Chevron also soared, rolling over an expected earningsforecast by 54 cents. All three released their quarterly statementsyesterday.

Powder River producer Pennaco Energy revised downward itsestimated gas production for the fourth quarter of 2000 and for2001 because of some maneuvering by competitors that has reducedits wellhead deliveries. It also has encountered some downholewater problems at a couple of its projects.

Strong second-quarter earnings and cash flow and expectationsthat gas prices will remain high for some time prompted AnadarkoPetroleum to raise its 2000 spending program by 34% to $1.5billion.

Strong second-quarter earnings and cash flow and expectationsthat gas prices will remain high for some time prompted AnadarkoPetroleum to raise its 2000 spending program by 34% to $1.5billion. The raise amounts to a $384 million increase over thecombined total of Anadarko’s previously announced capital budget of$766 million and the $350 million remaining from the 2000 capitalbudget of Union Pacific Resources, with which Anadarko recentlymerged.

Cash prices plunged as expected Thursday, with nearly everypoint in all markets down between 20 and 30 cents.

The cash market used Friday’s futures advance, along withexpectations of hotter weather this week, as a springboard toachieve across-the-board gains in double digits Monday.