Profit

In an effort to streamline its online trading process andstrengthen energy trading efficiency, HoustonStreet Exchange hasjoined the independent and not-for-profit Organizaton for theAdvancement of Structured Information Standards (OASIS). Theexchange says its decision to join marks the industry’s firstmaneuver to bring open standards to wholesale energy trading.

After testing, but not breaching stubborn resistance at $4.60Thursday, natural gas futures tumbled lower Friday as traderselected to take profits ahead of the weekend. The near-month Julycontract was hit with two distinct selling waves during the firsthour of trading Friday, setting the tone for a session in which thecontract slipped 10.3 cents to finish at $4.448.

Through a partnership announced yesterday with Endesco, afor-profit subsidiary of the Institute of Gas Technology (IGT),NiSource Inc. subsidiary EnergyUSA said it is advancing plans tobecome a major provider of residential fuel cells in the emergingmarket for distributed generation technology.

Following a 4-day, 20-cent price rally, bulls in the natural gaspit cooled their heels yesterday as traders took profits amid ahost of negative short-term technical factors. After peaking forthe day shortly after 11:00 A.M. (CST) at $3.165, selling hit themarket in two distinct waves. It was the second thrust that pushedMay below key support at $3.10 to settle at $3.098, down 6 centsfor the session.

Achieving a vast amount of success in Georgia’s newlyderegulated retail gas industry came at a significant price, SCANAsaid last week as the South Carolina-based company reported 1999earnings of $179 million, or $1.73/share of common stock, down from$223 million, or $2.12/share in 1998.

Natural gas bulls never got a chance yesterday as traders shedlong positions in sympathy with falling cash market prices and inanticipation of warming temperatures this week. By the time thedust had cleared and the orders were tabulated, the March contracthad slipped a cool 18 cents lower, tumbling beneath several keylayers of support and easily negating last Friday’s impressivegains.

The assets serve all major metropolitan areas, the largest industrialload centers, and numerous natural gas trading hubs, El Paso said. Theyare also well positioned to serve many of the state’s existing and plannedgas-fired electric generation facilities. Included in the transaction are8,500 miles of natural gas transmission pipelines that transport approximately2.8 Bcf/d, nine processing plants that currently process 1.5 Bcf/d, anda 7.2 Bcf natural gas storage field. The transaction also includes significantnatural gas liquids pipelines and fractionation facilities.

It was no secret what bull traders in the natural gas pit had todo yesterday in order to propel the market higher; the charts toldthe story.

Chesapeake Energy Corp. of Oklahoma City generated third-quarternet income of $18.1 million and cash flow from operations of $43.4million on 32.7 Bcfe of production. Average commodity pricesrealized during the quarter were $18.90/barrel of oil and $2.26/Mcfof gas for a gas equivalent price of $2.40/Mcfe.