Predictions

Weather remained cold Tuesday over most of the East, butpredictions of at least a moderate warming trend developing and ahuge plunge in futures were enough to spur the cash market to makea steep descent of its own. Dollar-plus declines were common.Transco Zone 6 (NYC) fell nearly 20 dollars, yet still reigned asthe costliest price point with an average of more than $18.

It doesn’t matter whether forecasters’ predictions of an earlycold winter materialize or not. Under any short-termweather/storage scenario, Salomon Smith Barney (SSB) continues tobe very bullish on the outlook for natural gas prices.

It doesn’t matter whether forecasters predictions of an earlycold winter materialize or not. Under any short-termweather/storage scenario, Salomon Smith Barney (SSB) continues tobe very bullish on the outlook for natural gas prices.

AGL Resources’ fiscal third quarter marks the third consecutive quarter the company has exceeded analysts’ predictions. The results also signify the first steadily increasing earnings trend after becoming the first gas utility to completely exit the gas merchant function.

AGL Resources’ fiscal third quarter marks the third consecutivequarter the company has exceeded analysts’ predictions. The resultsalso signify the first steadily increasing earnings trend afterbecoming the first gas utility to completely exit the gas merchantfunction.

Cambridge Energy Research Associates (CERA) issued a report lastweek outlining the possible avenues retail marketing will take asit matures. The report, ‘Customer Choice in the Information Age:North American Retail Energy Scenarios to 2015’, forecasts thedifferent situations that would develop based on how fast regulatedutilities exit retail markets.

Still up for sale, Mitchell Energy & Development Corp. beatanalyst earnings forecasts by 25% in the fourth quarter with netearnings of $35.3 million. This compares to a net loss of $47.3million in the prior-year period. The prior period’s loss wascaused by low commodity prices and included after-tax charges of$46.9 million for asset impairments and personnel reduction. Thecurrent quarter’s results included a $0.7 million after-taxreversal of previous litigation provisions.

To the surprise of absolutely no one, cash prices plunged acrossthe board Tuesday. It was an easy call to make considering theresidual effect of Monday afternoon’s steep screen dive and warmingweather trends that are likely to get even warmer next week,sources said.

If Questar’s predictions concerning its Pinedale Anticline fieldhold true, then the Utah-based company is about to embark on one ofthe most significant exploration and production projects in the itshistory. Although some drilling has already taken place at theSublette County, WY, field, Questar is preparing to launch amassive drilling program aimed at cultivating the projected 3 Tcfthe field holds.