Prices

Williams share prices slid 5% but then rebounded late last weekand analysts adjusted their earnings forecasts following anannouncement that the company expects third quarter earnings pershare to be “substantially below” current Wall Street estimates of20 cents/share. The company said a change in accounting standardsand cooler than normal temperatures in Southern California, itsmajor power sales area, were to blame. But that’s just half thestory.

Williams share prices dipped nearly 5% to $40.88/share yesterdayfollowing an announcement that the company expects third quarterearnings per share to be “substantially below” current Wall Streetestimates of 20 cents/share. The company said a change inaccounting standards and cooler than normal temperatures inSouthern California, its major power sales area, were to blame. Theannouncement was made partly in preparation for WilliamsCommunications’ initial public offering next month.

Natural Gas Intelligence the weekly gas market newsletter published : August 16, 1999

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.

Fueled by stronger cash prices and revised weather forecasts,the futures market erupted higher early yesterday as speculativeand commercial traders added to their positions. However, afternotching the highest mark for a spot month since the week endingDecember 12, 1997 at $2.77, the September contact filtered lower ina quiet afternoon session to settle at $2.721, up 2.3 cents on theday. Estimated volume was light, with 62,221 contracts changinghands.

The increase in prices is primarily attributable to increased demand for electric generation and storage injections.

While power demand hit record levels throughout the Northeastand power prices rocketed to $850/MWh last week, NRG Energycontinued to position itself as a major generator in thepower-hungry region. The subsidiary of Northern States Power landeda major power generation deal with Connecticut Light & Power ofHartford. NRG is snatching up 2,235 MW of generating capacity fromCL&P for $460 million.

While power demand hit record levels throughout the Northeastand power prices rocketed to $850/MWh yesterday, NRG Energycontinued to position itself as a major generator in thepower-hungry region. The subsidiary of Northern States Power landeda major power generation deal with Connecticut Light & Power ofHartford. NRG is snatching up 2,235 MW of generating capacity fromCL&P for $460 million.

Cash prices proved remarkably resistant Friday to the softnessthat usually accompanies lowered demand for a weekend period. TheGulf Coast and Northeast citygates were essentially flat, whilemost of the small declines were concentrated in the West andMidcontinent. Sources attributed the relatively firm pricing tomodest support from a slightly higher futures screen, along withtrader anticipation of a return to hotter weather morecharacteristic of June than last week’s below-normal thermometerreadings throughout much of the East.