Real

In light of the lingering safety concerns, real or perceived, over LNG and the cancellation of four proposed LNG terminals due to local opposition, Lehman Brothers is forecasting that only three new liquefied natural gas (LNG) import terminals, out of a total of about 40 proposed terminals, will be built in North America by 2010 for a total of seven operating terminals.

Fueled by the first real blast of warm air of the cooling season, natural gas futures prices rallied and retreated Monday as traders alleviated oversold conditions and then turned and took profits. Local traders were active in the price movement, adding liquidity and volatility to the gas pit at Nymex.

The energy and utilities sectors are among those where the pressure remains to effect “real” debt reduction in what likely will be a “quarter-in, quarter-out” battle, according to a new report by CreditSights analysts. The report found an 85% escalation in debt in the energy sector over the past four years — among the highest for the sectors — largely driven by the last few years of consolidation.

The energy and utilities sectors are among those where the pressure remains to effect “real” debt reduction in what likely will be a “quarter-in, quarter-out” battle, according to a new report by CreditSights analysts. The report found an 85% escalation in debt in the energy sector over the past four years — among the highest for the sectors — largely driven by the last few years of consolidation.

Four House committees and a Senate panel voted out energy bills last week that offer a host of financial and tax incentives for oil and natural gas producers, strengthen FERC’s enforcement hand somewhat in the energy markets and attempt once again to open the Arctic National Wildlife Refuge (ANWR) to exploration and production activities.

Without real independence that is not possible with a single-state ISO, none of the recommended fixes will work for California’s beleaguered nonprofit electric transmission grid operator, Cal-ISO, according to a third-party audit ordered by the Federal Energy Regulatory Commission released on Friday.

Forecasting exploration and production companies’ stock price performance can be a real headache because it can’t be done by traditional means. According to a new Lehman Brother’s report, it turns out that the key determinants of large and small E&P company share price performance are per share growth in reserves, production and cash flow, rather than historical accounting measures, such as earnings and returns on capital.

In what a Midcontinent/Midwest trader called the first “real” spell of something approximating winter that the market has seen so far this season, cash prices made a huge turnaround Monday from the serious weakness they had shown heading into the weekend. Nearly all points rose at least 30 cents, and gains of half a dollar or more were not uncommon. Appalachian pipe CNG and some Northeast citygates peaked at $3 or more, a marketer said. NGI’s Henry Hub average gained 40 cents to $2.14.

Forecasting exploration and production companies’ stock price performance can be a real headache because it can’t be done by traditional means. According to a new Lehman Brother’s report, it turns out that the key determinants of large and small E&P company share price performance are per share growth in reserves, production and cash flow, rather than historical accounting measures, such as earnings and returns on capital.