Helped

Helped higher due in part to colder than normal temperatures and winter storms in the Northeast, February natural gas futures on Monday explored higher. After reaching a high at $6.51, the prompt month went on to settle at $6.476, good for a 23.6-cent increase on the day. Awaiting its turn as the prompt month, March futures also achieved a 25.3-cent increase on the session to settle at $6.516.

A former Enron Corp. executive testified Monday that ex-CFO Andrew Fastow helped set up a bogus transaction with Merrill Lynch to sell and then buy back some power generating barges to inflate Enron’s 1999 earnings.

Successful drilling programs in East Texas, the Arkoma Basin and the River Ridge discovery in New Mexico helped Southwestern Energy Co. grow its natural gas and oil production 25% in the second quarter. The Houston-based independent reported its production reached 12.6 Bcfe in the quarter, up from 10.1 Bcfe a year earlier. Output was also up sequentially from the first quarter’s 11.4 Bcfe.

A change in inventory accounting principles helped Royal Dutch/Shell Group increase net income in the first quarter by $226 million to $4.7 billion, up from the previously reported $4.43 billion. The oil major last week also updated its quarterly production figures to give investors “further clarity” ahead of its second quarter results, which will be announced July 29.

With some of the new-found air conditioning load that had helped support prices at midweek starting to fade again and chilly weather in the Rockies and north-central U.S. moderating from the other direction, cash quotes ranged from flat to down a little more than a dime at nearly all points Friday. The slump in industrial demand typically associated with a weekend also contributed to the generally mild bullishness.

North American natural gas, which helped propel EnCana Corp. to huge profits last year, will continue to be the “primary focus” for the Calgary-based company, CEO Gwyn Morgan said last week. The company on Thursday reported 2003 earnings of US$2.36 billion ($4.92/share), up 183% from pro forma 2002.

The cold north wind certainly helped blow out the price difference, or basis, this winter between the Gulf Coast producing region spot price points and the northeastern gas market, but pipeline capacity constraints to the market region have been known for several years. Unfortunately, there are few projects available that can provide any relief in the near term, according to consultants at Arlington, VA-based Energy and Environmental Analysis Inc. (EEA).

The cold north wind certainly helped blow out the price difference, or basis, this winter between the Gulf Coast producing region spot price points and the northeastern gas market, but pipeline capacity constraints to the market region have been known for several years. Unfortunately, there are few projects available that can provide any relief in the near term, according to consultants at Arlington, VA-based Energy and Environmental Analysis Inc. (EEA).

Strong natural gas prices and an asset sale helped double the quarterly income and revenue at Houston-based GulfTerra Energy Partners LP, the company said Monday.