Helped

Forecasts of triple-digit temperatures helped ignite triple-digit price spikes Monday at quite a few points in the Gulf Coast and Northeast. All cash trading points were up by at least 30 cents. Transco Zone 6-New York City led the climb with a humongous gain of nearly $1.70.

XTO Energy Inc. said Tuesday that record natural gas and oil production helped the company post record second quarter earnings of $597 million, or $1.64 per share ($1.62 diluted), a 171% increase from second quarter 2005 earnings of $220 million, or 61 cents per share (60 cents diluted). The company also announced that it is raising its full-year 2006 production targets.

A cold front moving in to cool off the previously sizzling Northeast and huge negative pressure from Monday’s screen plunge helped ensure that cash prices fell Tuesday at all points except one, which saw a tiny gain.

Following the extended run-up last week, petroleum futures dropped significantly Monday, which helped natural gas futures come off in tandem. May natural gas futures put in a low of $7.520 on the day before closing at $7.558, down 42.3 cents from last Friday’s close. The May contract expires Wednesday.

Helped lower by sagging crude oil futures and doubts surrounding just how cold the coming “cold front” will be, March natural gas futures started Tuesday’s session more than 10 cents lower than Monday’s close and continued lower into territory not seen since last summer. The prompt month put in a new front-month low before settling at $7.858, down 13.7 cents from Monday’s finish.

Strong drilling results from the Barnett Shale play in Texas along with solid gains in the state and in North Louisiana helped EOG Resources Inc. to grow its daily oil and natural gas output 13.7% in the third quarter over a year ago. Total North American output was up 12%, with U.S. production up 16.2% from 3Q2004. EOG’s 3Q2005 income also scored, more than doubling from a year earlier to $341.9 million ($1.40/share) from $169.6 million ($0.71) in 3Q2004.

After a three-year trial that helped turn northeastern British Columbia into a Canadian natural gas drilling hot spot, the provincial government is poised to make an array of incentives permanent and add a new one.

Increased profits in power generation and oil/natural gas operations helped Black Hills report increased first quarter net income of $15.7 million, or 48 cents/share, compared to $9.7 million, or 30 cents/share, for the same period in 2004. Telecommunications showed a loss of $900,000 and energy marketing/transportation earnings decreased $1 million, compared to the same quarter last year.

Asset sales and lower interest expenses helped Duke Energy Corp.’s earnings more than double in the first quarter, to $868 million (91 cents/share), compared with $311 million (34 cents) in 1Q2004. On a diluted basis, earnings were 88 cents/share, compared with 33 cents a year earlier.