Favorable

As year-over-year weather comparisons become more favorable and surplus natural gas currently available shrinks on increased demand, the price ratio between oil and gas should “at least” approach Btu parity of 6:1 and possibly get narrower over the next six months, Raymond James analysts said in a new report. With front-end oil futures near $60/bbl, “that means the fair value for gas is about $10/Mcf, not $7.36,” which is the current price of front-month gas futures.

Occidental Petroleum’s proposed Ingleside, TX, LNG terminal and associated San Patricio Pipeline were granted a favorable final environmental impact statement (FEIS) on Friday by FERC. The Commission said the 1 Bcf/d terminal, which would be located near Occidental’s chemical plant on Corpus Christi Bay, would have limited adverse impact on the environment if certain recommended mitigating measures are taken by the company.

The exploration and production (E&P) sector will continue to benefit from “very favorable” industry fundaments as the year progresses because of two factors: strong earnings because of high commodity prices that have far outpaced service costs and “attractive” stock valuations, according to a report by Raymond James’ energy analysts.

Occidental Petroleum’s proposed Ingleside, TX, LNG terminal and associated San Patricio Pipeline were granted a favorable final environmental impact statement (FEIS) on Friday by FERC. The Commission said the 1 Bcf/d terminal, which would be located near Occidental’s chemical plant on Corpus Christi Bay, would have limited adverse impact on the environment if certain recommended mitigating measures are taken by the company.

FERC on Friday issued favorable final environmental reviews for the two most hotly disputed liquefied natural gas (LNG) projects that have come before the agency in the last couple of years — the proposed 4.4 Bcf Weaver’s Cove LNG import terminal near Fall River, MA, and KeySpan LNG’s proposed conversion of its existing 600,000 barrel LNG storage terminal in Providence, RI, to an import terminal. But the KeySpan LNG project fell short of the current federal safety standards, the agency said.

FERC on Friday issued favorable final environmental reviews for the two most hotly disputed liquefied natural gas (LNG) projects that have come before the agency in the last couple of years — the proposed 4.4 Bcf Weaver’s Cove LNG import terminal near Fall River, MA, and KeySpan LNG’s proposed conversion of its existing 600,000 barrel LNG storage terminal in Providence, RI, to an import terminal. But the KeySpan LNG project fell short of the current federal safety standards, the agency said.

Citing Wall Street’s favorable reaction to its utility “back-to-basics” movement, Spokane, WA-based Avista Corp. was elevated to an investment-grade credit (Baa3), albeit the lowest rung, by Moody’s Investors Service, specifically related to about $90 million of debt by the utility holding company. Concurrently, the rating agency assigned the same rating to Avista’s five-year $350 million committed senior secured credit agreement with a December 2009 maturity.

Citing Wall Street’s favorable reaction to its utility “back-to-basics” movement, Spokane, WA-based Avista Corp. was elevated to an investment-grade credit (Baa3), albeit the lowest rung, by Moody’s Investors Service on Friday, specifically related to about $90 million of debt by the utility holding company. Concurrently, the rating agency assigned the same rating to Avista’s five-year $350 million committed senior secured credit agreement with a December 2009 maturity.

As another company in the industry riding the favorable commodity price wave, Amerada Hess reported Wednesday its unaudited fourth quarter profits more than doubled, hitting $229 million, or $2.22/share, compared with $68 million, or 71 cents/share, for the same period at the end of 2003. Revenues for the quarter were $4.6 billion, compared to $3.6 billion for the same period a year earlier.