Raising

Historic high energy prices have Standard & Poor’s Ratings Services raising different issues for the natural gas and coal sectors, according to previews Thursday of special “CreditWeek” reports scheduled to be released next week. For natural gas, the over-concentration of critical infrastructure in the Gulf of Mexico region has been exposed; and for coal, financial and business-risk vulnerability are surfacing despite an 18-month steady run-up in prices, S&P said.

BP is raising its stake in North American natural gas, announcing it will invest up to $2.2 billion to double production from its acreage in the Wamsutter gas field in the Rocky Mountains. The multiyear drilling program is expected to increase BP’s share of ultimate recovery from the Wyoming field by 450 MMboe and increase daily net production 125-250 MMcf/d by the end of the decade.

Raising its margins on the same contracts for the second time in a little over a week (see Daily GPI, Aug. 17), the New York Mercantile Exchange Inc. (NYMEX) said late Thursday that it would change the margins for natural gas, Henry Hub swap, NYMEX miNYsm natural gas, Henry Hub swing swap and Henry Hub penultimate swap futures contracts at the close of business Friday.

By hedging additional natural gas, oil and natural gas liquids (NGL) production for 2005, Energen Corp. is raising its earnings guidance by 15 cents to a range of $4.25-$4.45/share in 2005. The Birmingham, AL-based company hedged an additional 0.9 Bcf of its 2005 gas production at a New York Mercantile Exchange-equivalent price of $6.56/Mcf, 0.4 million bbl of its oil production at a Nymex-equivalent price of $43.825/bbl, and 20.2 million gallons of its NGL production at an average price of 62.8 cents/gallon. Included in the company’s 2005 earnings guidance is an estimated 3 cents/diluted share from an unidentified $200 million acquisition in 4Q2004. The company’s 2005 guidance also assumes that prices applicable to Energen’s unhedged production will average $6/Mcf for gas, $32/bbl for oil, and 53 cents/gallon for NGLs.

The Commodity Futures Trading Commission has amended its large trader reporting rules, raising the number of open interest transactions for firms to qualify as large traders whose positions must be reported to the CFTC. The final rule, published in the Federal Register Dec. 21 (p. 76392), covers a laundry list of indexes and commodities, including natural gas.

By hedging additional natural gas, oil and natural gas liquids (NGL) production for 2005, Energen Corp. said Wednesday it is raising its earnings guidance by 15 cents to a range of $4.25-$4.45/share in 2005.

The Commodity Futures Trading Commission has amended its large trader reporting rules, raising the number of open interest transactions for firms to qualify as large traders whose positions must be reported to the CFTC. The final rule, published in the Federal Register Dec. 21 (p. 76392) covers a laundry list of indexes and commodities, including natural gas.

While raising a possibility that the dormant Deep Panuke project will be revived offshore of Nova Scotia, Canada’s top natural gas producer has made it plain its priorities are out West and on safer bets.

While raising a possibility that the dormant Deep Panuke project will be revived offshore of Nova Scotia, Canada’s top natural gas producer has made it plain its priorities are out West and on safer bets.