Soar

Third quarter earnings for the three largest U.S. oil companies— ExxonMobil, Chevron and Texaco — handily surpassed analysts’expectations on the wave of surging oil and gas prices. ExxonMobilbeat predictions by six cents, Texaco beat the estimates by 12cents and Chevron also soared, rolling over an expected earningsforecast by 54 cents. All three released their quarterly statementsyesterday.

The huge price run-ups that had been predicted for Thursdaymaterialized on schedule with double-digit gains across the board.Most increases were 30 cents or greater, with citygate quotes forFlorida, Pacific Gas & Electric and several Northeast pointstouching on the high side of $6.

The cash market was doing a skyrocket imitation Monday amidsignificant fundamental influences, along with a large dose ofsupport from both natural gas and oil futures. Only a fewRockies/Pacific Northwest and Western Canada points failed to riseby about 20 cents or more (MRT and ANR ML-7 were among theexceptions elsewhere).

Tulsa’s Williams Cos., buoyed by soaring natural gas prices andbetter news than expected on its rate-refund liabilities andperformance by its communications group, said last week that itexpects second-quarter profits to exceed the first quarterperformance of 27 cents a share. It had been expected to earn 16cents, according to analysts polled by First Call/ThomsonFinancial.

Tulsa’s Williams Cos., buoyed by soaring natural gas prices andbetter news than expected on its rate-refund liabilities andperformance by its communications group, said yesterday that itexpects second-quarter profits to exceed the first quarterperformance of 27 cents a share. It had been expected to earn 16cents, according to analysts polled by First Call/ThomsonFinancial.

The incremental cash market pulled off a double play asexpected: following up the screen’s storage report-based spikeWednesday afternoon with across-the-board double-digit gains of itsown Thursday morning. It was almost like watching a replay from aweek earlier.

Those fireworks you may have heard Thursday were Northeastcitygate prices doing their best skyrocket imitations. While therest of the cash market was considerably more mundane with pricesranging from flat to only a few cents higher, Transco’s Zone 6-NYCpool and Algonquin citygates in New England were making eye-poppingdollar-plus jumps.

San Juan Basin prices could average close to $3.20/year by 2005,and other western points could see similar increases because of themajor supply shift that is expected to occur once the Allianceproject comes on line next year, Larry Larsen, a vice president atWilliams Gas Pipeline-West, said in a panel discussion this week atZiff Energy Group’s North American Gas Strategies conference inCalgary.

San Juan Basin prices could average close to $3.20/year by 2005,and other western points could see similar increases because of themajor supply shift that is expected to occur once the Allianceproject comes on line next year, Larry Larsen, a vice president atWilliams Gas Pipeline-West, said in a panel discussion this week atZiff Energy Group’s “North American Gas Strategies” conference inCalgary.