The cash market had plenty of negative guidance in recording double-digit losses across the board Thursday. The pleasantly seasonable mid-spring conditions that dominate the current weather picture, a lengthy futures slide that continued Thursday, and the usual drop in industrial load that lowers weekend volumes all added to a powerful price depressant.
Articles from Guidance
Responding to a motion from the California parties, FERC Thursday agreed to temporarily suspend its procedural schedule established in an interim guidance order it released last week. The federal regulatory process will wait for a ruling from a federal district court in New York City that has scheduled a hearing for Jan. 26 on the issue of Calpine Corp.’s bankruptcy court request to set aside eight of its power supply contracts because they are unprofitable for the Chapter 11-protected company.
Denver-based independent Whiting Petroleum Corp. estimated its full-year 2005 production will be 0.5-2% lower than previous guidance because of pipeline curtailments and weather-related shut ins in November and December. Whiting estimates 4Q2005 output will approximate 22.1 Bcfe, which would bring total 2005 production to 72.5 Bcfe. Based on current commodity price levels, Whiting expects to take a cash hedging loss of approximately $12.7 million in 4Q2005, a loss expected to come exclusively from a 1.5 Bcf/month contract with a ceiling of $10/MMBtu. The contract expires on Saturday (Dec. 31). Whiting also announced a preliminary 2006 drilling budget of $360 million, excluding acquisitions, which is 70% higher than this year. Whiting plans to direct 60% of its estimated 2006 capital expenditures to the development of its proved undeveloped reserves and 40% to the development of currently non-proved reserve categories.
ConocoPhillips expects 2005 oil and natural gas production will be flat when compared with 2004, or about 60,000 boe/d under its initial guidance, but longer term, output should rise 3%, company officials said Wednesday. This year’s shortfall was blamed on lost output under production-sharing agreements with foreign governments, as well as the Gulf Coast hurricanes in the third quarter.
Oklahoma City-based Devon Energy Corp. on Thursday cut its fourth quarter production guidance by about 3 million boe because of the ongoing impact from Hurricanes Katrina and Rita.
FERC issued a policy statement Wednesday that gives interstate natural gas pipelines further guidance on how to evaluate the creditworthiness of shippers on their systems.
In its largest property purchase to date, Alabama utility and E&P company Energen Corp. said last week that it is buying about 250 Bcfe of proved San Juan Basin coalbed methane reserves for $273 million from an unnamed private company.
In its largest property purchase to date, Alabama utility and E&P company Energen Corp. said Monday it is buying about 250 Bcfe of proved San Juan Basin coalbed methane reserves for $273 million from an unnamed private company.
The Federal Energy Regulatory Commission will hold a conference/workshop in Houston, TX, on May 10 to provide industry guidance on implementing the new standards of conduct that will regulate the relationships between jurisdictional natural gas/electric transmission providers and their affiliates.