Fundamentals

Describing itself as a “lower-risk play on the long term fundamentals of natural gas,” Questar Corp. may have validated its claim with its 2Q2007 earnings and production results. The company increased its natural gas and oil production by 13% and its net income by 24% from a year ago — in spite of the current price environment for Rocky Mountain natural gas production.

Describing itself as a “lower-risk play on the long term fundamentals of natural gas,” Questar Corp. may have validated its claim with its 2Q2007 earnings and production results. The company increased its natural gas and oil production by 13% and its net income by 24% from a year ago — in spite of the current price environment for Rocky Mountain natural gas production.

Differing weather fundamentals in various regions produced mixed price movement again Thursday, but due to a mini-heat wave developing in the Northeast, there were considerably more gains than on Wednesday when softness pervaded most of the market. However, sources agreed that declines will set in again at most if not all points in Friday’s trading for the holiday weekend.

Despite a minimal change in interest rates, energy prices or company fundamentals, U.S. natural gas utilities continued their bullish run in the first quarter and are showing no signs of slowing down, according to a review by A.G. Edwards analysts.

Despite a minimal change in interest rates, energy prices or company fundamentals, U.S. natural gas utilities continued their bullish run in the first quarter, and they show no signs of abating, according to a review by A.G. Edwards analysts.

Uncertain weather conditions have fogged the outlook of the North American natural gas market, but supply and demand fundamentals continue to support favorable pricing in the longer term, Standard & Poor’s Ratings Services (S&P) energy analysts said last weekly.

Weather has created a haze on the direction of the North American natural gas market, but supply and demand fundamentals continue to support favorable pricing in the longer term, Standard & Poor’s Ratings Services (S&P) energy analysts said Wednesday.

It’s hard to deny that market fundamentals are looking pretty bearish for the last half of December. Cash prices tumbled about 30-85 cents on Monday from weekend levels, depending on the location, except for a few unusual cases in the already-depressed Rockies where Questar posted a small gain.

Despite the current bearish landscape in natural gas market fundamentals, Raymond James analyst J. Marshall Adkins said he sees a “continued rebound in gas prices” going into 2007 as “the natural gas overhang experienced throughout the injection season will dissipate.” As a result the analyst’s group is still predicting $10 Henry Hub gas for the entirety of 2007.