Hefty

The UK’s leading energy retailer, Centrica, is taking a bet that shale gas resources in the country’s Bowland Basin are the real deal after making a hefty commitment in explorer Cuadrilla Resources Ltd.

EOG Resources Inc. last week reported a nearly 53% increase in net income for the first quarter of 2013, gains due in large part to hefty growth in the Eagle Ford Shale.

Physical natural gas cash prices fell 3 cents on average Wednesday, but that included some hefty drops at northeastern points, as weather-related demand plummeted. If those are taken out of the mix, the overall market actually added a couple of pennies on average. Gulf points were particularly strong, and New England was particularly weak. Spot futures managed to settle well above $4 and posted an 18-month high. At settlement May was $4.068, up 7.7 cents and June added 7.7 cents as well to $4.108. May crude oil gained 24 cents to $96.58/bbl.

Debt- and dry gas-laden Quicksilver Resources Inc. posted a hefty loss for the second quarter, largely due to a nearly $1 billion asset impairment reflecting low commodity prices. Last week management talked up plans to right the balance sheet and weather the low-price period with spending cuts and other measures.

Debt- and dry gas-laden Quicksilver Resources Inc. posted a hefty loss for the second quarter, largely due to a nearly $1B asset impairment reflecting low commodity prices. On Tuesday management talked up plans to right the balance sheet and weather the low-price period with spending cuts and other measures.

November natural gas futures eased Monday in a lackluster session showing no interest in following through on Friday’s hefty 17.2-cent jump. At the close November had lost 1.5 cents to $3.688 and December had given up 5.7 cents to $3.903. November crude oil fell 42 cents to $86.38/bbl.

Thanks in part to some kind words for the commodity from the President of the United States, May natural gas futures recovered a hefty chunk of Tuesday’s losses Wednesday as traders sensed a surge past recent highs. However, the move fell short as May added 9.2 cents to $4.355 and June added 9.1 cents to $4.426. May crude oil retreated 52 cents to $104.27/bbl.

November natural gas futures continued their downward march Monday as traders focused on unsupportive weather conditions and expectations of another hefty shoulder-season addition to inventories. At the close November posted a 10.4 cent loss to $3.431 and December shed 5.5 cents to $3.870.

Just as the prior weeks’ report showing greater-than-expected withdrawals from gas storage inventory sparked hefty futures gains, Thursday’s report by the Energy Information Administration (EIA) showing less-than-anticipated withdrawals prompted a sharp reversal. At the close, January futures fell 17.8 cents to $5.643 and February tumbled 18.6 cents to $5.698. February crude oil rose $1.38 to $78.05/bbl.