Led by follow-through buying, record-setting heat out West, anda constructive over-the-counter market, natural gas futures eruptedhigher at the open yesterday as buyers propelled the market to newthree and a half year highs. The rally was short-lived, however,and after posting a $3.985 high during the first hour of trading,the June contract tumbled lower under a wave of selling pressure tofinish at $3.747, down 7.8 cents on the day. Estimated volume wasextremely heavy, with 134,429 contracts changing hands.
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Articles from Record
Low Canadian Production Could Limit Exports
Despite record drilling and high gas prices, Canadian producersstill are not managing to boost production. TransCanada Pipelinesestimates Alberta field receipts were 2% lower than expected thiswinter and ended up being essentially flat with the 12.4 Bcf/drecorded in winter 1998-99.
Canadian Production to Remain Flat this Summer
Despite record drilling and high gas prices, Canadian producersstill are not managing to boost production. TransCanada Pipelinesestimates Alberta field receipts were 2% lower than expected thiswinter and ended up being essentially flat with the 12.4 Bcf/drecorded in winter 1998-99.
PaineWebber: Let the Good Times Roll
Taking into account strong gas futures prices despite thewarmest winter on record, a bleak supply picture and projections ofa very hot summer, PaineWebber reported an increase in its year2000 projection of composite spot gas prices from $2.40/MMBtu to$2.50/MMBtu. The firm’s report, issued yesterday, also indicatedthat the time is right to invest in diversified energy companies.
Piedmont CEO Steps Down, Remains Chairman
As Piedmont Natural Gas Co. reported record net income Friday atits annual shareholders meeting in Charlotte, NC, Chairman and CEOJohn H. Maxheim announced his retirement from active operation ofthe company after 22 years. Maxheim said the company’s board hasnamed former Piedmont Natural Gas President and COO Ware F.Schiefer to succeed him as president and CEO.
Deja Vu: Much Higher in Northeast, Less Higher Elsewhere
Sorry to sound like a broken record, but Thursday’s marketcontinued the pattern set Tuesday and Wednesday: ever-higher pricepeaks in the frigid Northeast (the top quote was $19 at TranscoZone 6-NYC) and considerably smaller but still strong increaseselsewhere.
Mitchell Results Set 3-Year Record
Things are looking up at Mitchell Energy & Development Corp.at a time when the company is up for potential sale. Mitchellreported third quarter net earnings of $29.5 million versus a lossof $3.7 million in the prior-year period. The current quarter’sresults included a $5 million ($3.1 million after-tax) reversal ofprevious litigation provisions. Excluding the reversal, earningsincreased $30 million compared with the prior-year period,primarily due to significantly higher energy prices and loweroperating expenses. These positive factors were partially offset bythe adverse impact of natural gas and natural gas liquidsproduction curtailments in early August associated with a six-dayshutdown of the Bridgeport gas processing plant for maintenance andequipment upgrades.
Mitchell Results Set 3-Year Record
Things are looking up at Mitchell Energy & Development Corp.at a time when the company is up for potential sale. Mitchellreported third quarter net earnings of $29.5 million versus a lossof $3.7 million in the prior-year period. The current quarter’sresults included a $5 million ($3.1 million after-tax) reversal ofprevious litigation provisions. Excluding the reversal, earningsincreased $30 million compared with the prior-year period,primarily due to significantly higher energy prices and loweroperating expenses. These positive factors were partially offset bythe adverse impact of natural gas and natural gas liquidsproduction curtailments in early August associated with a six-dayshutdown of the Bridgeport gas processing plant for maintenance andequipment upgrades.
Records and Futures Fall as Temperatures Push 80 Degrees
Under heavy pressure from near record-setting high temperatures,the natural gas market caved in yesterday as traders continued toliquidate long positions. After opening at $2.80 the Decembercontract was hit with a Microsoft-like drop, breaking through keysupport levels at $2.74 and $2.70, to finish off 21.9 cents at$2.665.
Watson Outlines Dynegy’s Power-Driven Future
In reporting record third quarter improvements, including an 88%increase in earnings per share and a 16% increase in net income,Dynegy CEO Chuck Watson yesterday highlighted an aggressive powergeneration plan that will become the “engine for the growth of ourearnings for the future.”