natural gas prices

The recent winter price rally was the headline-grabber, but the real news is summer 2015 contracts being sold off, possibly reflecting a forecast for a softer natural gas balance in a year, according to Goldman Sachs.

Chesapeake Energy Corp. is making solid headway in reducing its well costs, with each specific play scrutinized by one team to improve across-the-board metrics, CEO Doug Lawler said Wednesday.

Responding to House Ways and Means Committee Chair Dave Camp’s (R-MI) tax reform proposal released Wednesday, an oil and gas group said that while they support some provisions, there are others that could negatively impact producers, royalty owners and the country’s ability to keep up with domestic oil and gas demand.

The natural gas pipeline partnership of Williams has agreed to buy the company’s Canada operations in Alberta for $1.2 billion. The assets include an oilsands off-gas processing plant near Fort McMurray, 260 miles of natural gas liquids (NGL) and olefins pipelines, and a NGL/olefins fractionation facility at Redwater. Williams Partners LP also is buying an expansion project underway at the Redwater facility. The operating results are expected to contribute distributable cash flow to the partnership of $135-160 million during the remaining 10 months of 2014, and $200-240 million in 2015. Williams owns 64% of the partnership.

Despite little change in fundamentals, March natural gas futures recorded a third consecutive decline Wednesday to expire at $4.855, down 24.1 cents from Tuesday’s finish, and $1.28, or 21% below Friday’s close of $6.135. April natural gas, which takes up the prompt contract mantle, ended Wednesday at $4.541, down 15 cents from Tuesday’s close.

The expiring March futures are expected to open 26 cents lower Wednesday morning at $4.840 as traders continue to unwind positions and anticipate less volatile trading in the April contract. Overnight oil markets inched higher.

The 11-year-old Na Kika platform in the deepwaters of the Gulf of Mexico (GOM) has ramped up the third phase of its program, with one well in operation and a second scheduled within the next few months, operator BP plc said Monday.

Harnessing Monday’s bearish momentum that sent the March natural gas futures contract plummeting 69 cents to close at $5.445, traders were at it again on Tuesday, dropping the soon-to-expire contract below $5 before a late-session rebound. Physical natural gas prices got in on the act on Tuesday for Wednesday delivery, with most averages across the country retreating by a dollar or more.

Carrizo Oil & Gas Inc. said 2013 marked the end of its transition from a company focused on gas to one narrowly focused on oil production.