Range

In a new long-range forecast, Puget Sound Energy (PSE) estimates that it will need an additional 2,000 MW of power generation by 2025 due to population and business growth in its service territory as well as expiring purchased-power contracts with other Northwest utilities and power producers.

After trading mostly sideways for the past 11 sessions in a range from $6.875 to $6.31, May natural gas — with help from the petroleum futures complex — broke more than 40 cents lower in two separate waves of trading on expiration day Wednesday before going off the board at $6.748, a whopping 37.2 cents below Tuesday’s settle.

The 44 Bcf injection into underground natural gas storage for the week ended April 8 was within the range of industry expectations but still dwarfed the five-year average injection of 1 Bcf and last year’s 16 Bcf contribution.

Looking to bust out of the $5.95 to $6.27 trading range, traders of March natural gas futures explored lower on Monday, breaking below the psychological $6 barrier once again. Despite reaching a low of $5.97, the prompt month climbed in the afternoon to settle at $6.093, unchanged from Friday’s close.

Energen Corp. on Tuesday forecast earnings in the range of $4.65-4.85/share in 2006, assuming that average New York Mercantile Exchange prices for unhedged natural gas will average $6.15/Mcf and oil production will average $35/bbl. Energen has hedged 10% of its estimated 2006 gas production and increased its oil hedge position.

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.

Atlanta-based AGL Resources Inc. on Friday said that its acquisition of NUI Corp. will increase 2005 earnings to a range of $2.10-2.30/share, ahead of this year’s expected earnings of $2.10-2.17. Analysts on average are expecting AGL to earn $2.23/share next year.

Atlanta-based AGL Resources Inc. on Friday said that its acquisition of NUI Corp. will increase 2005 earnings to a range of $2.10-2.30/share, ahead of this year’s expected earnings of $2.10-2.17. Analysts on average are expecting AGL to earn $2.23/share next year.

FERC staff has offered the Commission a full range of options to encourage the development of new natural gas storage facilities in the United States, including relaxing the requirements for independent storage operators to obtain market-based rates.