With gas prices tumbling fast and fundamentals decidedly bearish, producers have scrambled to lock in the highest wholesale rates available. Fort Worth-based XTO Energy Inc. said Monday it has hedged 90% of its production through March 2002 at $4.30/MMBtu and has hedged 200 MMcf/d at $3.72 for the last three quarters of 2002. XTO is one among many independents who have touted their foresight in locking long-term rates when prices were considerably higher.
Articles from Scrambled
Gulf Producers Run from Earl, Shut In 2.5 Bcf/d Plus
Gulf producers battened down the hatches on hundreds ofplatforms yesterday, shut in more than 2.5 Bcf/d of gas andscrambled ashore as Tropical Storm Earl, which seemed to pop out ofnowhere Monday, rapidly gained strength and appeared likely tobecome the Gulf’s first hurricane by this morning. At 4 p.m.yesterday, the National Weather Service said hurricane warningswere in effect from Pascagoula, MS, to Cameron, LA. Hurricanewatches were in effect from east of Pascagoula to Destin, FL, andwest of Cameron to High Island, TX. Earl was centered near 27degrees north latitude and 93 degrees west longitude, moving northnortheast at 12 mph with 60 mph winds. The NWS said it expectedEarl to become a hurricane prior to landfall.
Merc Traders Celebrate 2nd of July With Little Fanfare
The August natural gas futures contract slipped 1.1 cents to$2.439 Thursday, as traders scrambled to finish their businessahead of the long fourth-of-July weekend. “Today was pretty muchjust position covering ahead of the weekend,” a broker told GPI. “Idon’t think anyone was too concerned with, or had the goal of,moving August outside of its trading range,” he said. For thatreason, he was not surprised to see technical support at $2.38hold.