Plagued

After years of having been plagued by low prices relative to theHenry Hub, Rocky Mountain producers appear to be well positioned tohelp meet the projected 30 Tcf gas market. Even when Canada isconsidered, less gas has been drawn from Rockies basins on apercentage of projected reserves basis than from other NorthAmerican producing regions, noted Thomas A. Petrie of PetrieParkman & Co.

During the first quarter, Coastal Corp. continued to avoid themarket slump that has plagued the producing community, posting an11% increase in earnings to $134.5 million, or 62 cents per share,which was slightly better than the 60 cents/share that Wall Streetexpected. In 1Q98, the company earned $122.9 million, or 55 centsper share, but booked a $1.9 million loss related to an asset sale.

With its proposed valet service, Transwestern Pipeline isattempting to profit from the coordination problems that haveplagued the nationwide transportation grid since the Gas IndustryStandards Board’s intra-day nominations timeline was implemented inearly November, Dynegy Inc. says. It has asked FERC to eitherreject the service or modify it.

Trading at Nymex yesterday continued in the choppy, range-boundmanor that has plagued the market for most of November. Againtraders lamented the lack of a clear direction or price trend inthe futures pit. The December contract was held to a tight, 6-centtrading range and settled at $2.394 after never fully recoveringfrom a lower opening.