Pull

The push and pull of high gas storage levels and competing fuel prices on natural gas prices probably means a $6/MMBtu floor for the market unless the spring and summer are exceptionally mild, according to consultant Stephen Smith of Stephen Smith & Associates. Smith said even given the current major gas storage surplus, gas prices are pretty low compared to competing fuels and unlikely to venture much lower.

After absorbing the sizeable 230 Bcf natural gas storage report pull on Thursday without spiking, March natural gas futures used Friday to explore lower in search of support. Keeping within a tight 15-cent range, the newly minted prompt month hit a low of $6.15 in morning trading before settling at $6.259, down 9.3 cents on the day and less than a cent lower than the previous Friday’s settle.

Arizona-based utility holding company, UniSource Energy Corp., headed into the New Year with its stock price remaining near its 52-week high ($25/share), following a not-so-merry holiday season. Just before Christmas, Arizona regulators rejected UniSource’s proposed sale to a private investors group headed by three major Wall Street buy-out firms, and then just before the New Year’s weekend, the investors pulled the plug on their $3 billion offer to buy the holding company for Tucson Electric Power (TEP) and another combination utility in Arizona.

A decision by Dynegy Inc. to pull out of a tolling agreement last month will result in lower-than-expected earnings this year and could lead to a $391 million net loss in 2005, the company said Wednesday. Earnings in 2004 are expected to range between $2 million and $22 million (1-6 cents/share), well below an earlier forecast of $75-95 million (20-25 cents).

A decision by Dynegy Inc. to pull out of a tolling agreement last month will result in lower-than-expected earnings this year and could lead to a $391 million net loss in 2005, the company said Wednesday. Earnings in 2004 are expected to range between $2 million and $22 million (1-6 cents/share), well below an earlier forecast of $75-95 million (20-25 cents).

Calling it a two way street, American Gas Association CEO David Parker said natural gas producers should support customer issues such as low-income energy assistance and pipeline safety just as the nation’s natural gas utilities have lent their voice in Congress and elsewhere in support of greater natural gas production to meet growing customer demand.

Calling it a two way street, American Gas Association CEO David Parker said natural gas producers should support customer issues such as low-income energy assistance and pipeline safety just as the nation’s natural gas utilities have lent their voice in Congress and elsewhere in support of greater natural gas production to meet growing customer demand.

Calling it a two way street, American Gas Association CEO David Parker said natural gas producers should support customer issues such as low-income energy assistance and pipeline safety just as the nation’s natural gas utilities have lent their voice in Congress and elsewhere in support of greater natural gas production to meet growing customer demand.

El Paso Corp.’s oil and natural gas production business will pull out of some riskier ventures and return its underperforming “base” U.S. assets to profitability, the unit’s president said last week. With a tighter focus, and assuming natural gas prices hold at or above $4.25/MMBtu, El Paso Production Co. President Lisa Stewart forecast the business will “turn the corner in 2004.”