Misses

As NGI sources had expected, Thursday’s rise of about a dime in natural gas futures proved sufficient to outweigh moderating weather and the usual demand slump of a weekend period, producing moderate price gains at most eastern points Friday. In the West, however, Waha and PG&E-related points were the only ones to join the overall firmness. Most of the West ranged from flat to down about a nickel, although San Juan-Bondad recorded a whopping 36 cent plunge. Scattered eastern points were flat, but the majority rose by about a nickel to 15 cents.

As NGI sources had expected, Thursday’s rise of about a dime in natural gas futures proved sufficient to outweigh moderating weather and the usual demand slump of a weekend period, producing moderate price gains at most eastern points Friday. In the West, however, Waha and PG&E-related points were the only ones to join the overall firmness. Most of the West ranged from flat to down about a nickel, although San Juan-Bondad recorded a whopping 36 cent plunge. Scattered eastern points were flat, but the majority rose by about a nickel to 15 cents.

Duke Energy missed analysts earnings estimates for the fourth quarter and full year, posting earnings per share (EPS) of 35 cents and $2.64, respectively, compared to average Wall Street consensus estimates of 45 cents for the fourth quarter and $2.74 for the year. In 4Q2000, the company posted EPS of 47 cents and for the full year it posted $2.10.

Working to set aside enough reserves to cover potential lossesfrom power trading in California, Houston-based Reliant Energy Inc.reported fourth quarter results Friday that fell short of WallStreet expectations. The utility posted a loss of $298.6 million,or $1.04 a diluted share. In fourth quarter 1999, it also lost,posting earnings of $72.7 million or 26 cents a share.

A revised National Weather Service forecast, expanding theprediction of below normal temperatures for the Christmas weekendto the entire United States except for the sparsely populated UpperPlains, kept most prices from softening Friday, as some hadanticipated. Except for the still-most-expensive West Coast market,all other points realized gains from about a dime (San Juan Basin)to a little more than 50 cents (Northern Natural Gas market area).

FERC’s attempt at a “Solomonic solution” to the ongoing debateover the function of Sea Robin Pipeline – dividing the offshoresystem in two, with the smaller part being declared transportationand the larger section found to be gathering – apparently hasfailed miserably, with both pipelines and their customers citingshortcomings with the remand decision and seeking rehearing. If theSea Robin ruling is upheld by FERC, the case – which has beenpending since 1995 – would be headed back to the courts for asecond time.