Soaring

Despite the danger of a consumer backlash to soaring energyprices this winter and the potential for reregulation, the CEO ofThe New Power Company, the self-proclaimed first national retailenergy marketing company, believes the future is bright for hiscompany as it enters its first winter in operation.

With oil and natural gas prices soaring, the market for Canadianproducing and development properties has been heating up, asevidenced by property sales announced recently by PhillipsPetroleum and Apache Canada.

Spot prices appeared to be aimed at escaping earth’s orbit Mondayas they skyrocketed by huge amounts, led by several western pointsrecording increases in triple digits. A strong screen had someinfluence, but it was frigid weather saturating most of the NorthAmerican continent and prompting a plethora of pipeline OFOs (see Transportation Notes) that played thebiggest role in a market that awed many participants.

With oil and natural gas prices soaring, the market for Canadianproducing and development properties has been heating up, asevidenced by property sales announced recently by Phillps Petroleumand Apache Canada.

Boosted by soaring cash prices and cooler temps both outsidetraders’ windows and in the latest weather forecasts, natural gasfutures were higher Monday after gains registered in the Sundaynight Access trading session were validated by a gap higher open.The December contract was the largest beneficiary of the Sundayevening-Monday morning buying frenzy, finishing up 24.2 cents at$5.698. Meanwhile the back months lagged considerably, evidenced bythe 12-month strip, which only advanced 8.2 cents to $4.826.

Despite a high weekly storage injection of 36 Bcf last weekcompared to a five year average build of only 13 Bcf, according tothe American Gas Association (AGA)’s weekly report yesterday, thefutures market soared much higher and yanked cash prices up withit. Most daily cash price gains ranged from 20 cents to 35 cents.

Led by its unregulated wholesale energy operations, Duke Energy put in a whopper quarter, exceeding analysts expectations. Earnings before interest and taxes from its wholesale group jumped 175%.

Led by its unregulated wholesale energy operations, Duke Energyput in a whopper quarter, exceeding analysts expectations. Earningsbefore interest and taxes from its wholesale group jumped 175%.

High prices and increased production led to a blockbuster thirdquarter for PanCanadian Petroleum. The company’s cash flow morethan doubled to $654 million, or $2.59 per share, up from $303million, or $1.21 per share, during the same period last year. Netincome increased 194% to $297 million, or $1.17 per share comparedto $101 million, or $0.40 per share.