Rocket

Burlington Resources Inc. easily surpassed Wall Street’s expectations Wednesday, reporting a 238% increase in net income in the third quarter on higher commodity prices and a 3% overall boost in natural gas, natural gas liquids (NGLs) and crude oil production. Progress in the company’s cost containment efforts also helped the bottom line.

The gas futures rocket ran out of fuel and apparently had no parachute on Tuesday. April went into free-fall, opening the day down 22.5 cents, and then rapidly sailing straight through the $6 support level and several major trendlines to a hard landing at $5.944, down a grand total of 57.1 cents for the day.

Natural gas futures exploded to the upside Tuesday morning as traders reacted to private weather forecasts suggesting the December thaw will be short-lived, and temperatures will return to below normal by the end of the month. After gapping higher at the opening bell, the market was quickly whisked above recent highs by buy stop-loss orders positioned in the mid to upper $4.40s. The January contract finished at $4.636, up 27.7 cents for the session and within easy striking distance of six-week contract highs at $4.66.

Gathering momentum as the trading session wore on Thursday, natural gas futures extended to new six-week highs as traders were forced to grapple with the bullish one-two combination of strength in the crude oil market and a lower-than-expected 53 Bcf storage injection for the week ending Aug. 9. The September and October contracts caught the biggest updraft from the buying, each gaining 21.7 cents to close at $3.127 and $3.172 respectively. At 139,856, volume for all the contracts in the gas pit was heavy and served to punctuate the price move.