Solid

Prices were up across the board Thursday, with a solid majority of gains in double digits. Hotter weather trends in the Midwest and South were due to push highs into the 80s and 90s across most of both regions Friday, causing them to join the already sizzling West as sources of rising power generation load.

A few points, nearly all in the West, were flat to up as much as about a quarter Monday, but only one advanced more than a dime. There was a solid retreat across the rest of the market, with losses ranging from less than a nickel to a quarter or so. The Northeast recorded most of the declines of 20 cents or more.

A few flat to modestly higher numbers, mostly in the West and Midcontinent, surfaced here and there Monday, but prices were softer at a solid majority of points. They were pressured lower by Friday’s 7-cent screen decline and by moderating weather trends that so far have reduced heating load without replacing it with significant amounts of power generation load from higher temperatures.

Oklahoma City-based Devon Energy had a banner year in 2004, posting sharply higher earnings and showing solid reserves and production growth. The company’s net income was up 25% for the year to $2.2 billion ($4.38/share compared to estimates of $4.27) and net income in the fourth quarter rose 24% to $673 million ($1.35/share) compared to $543 million ($1.16/share) in 4Q2003.

Investors’ recognition of natural gas and oil price sustainability and resulting oilfield activity levels will lead to another banner year for energy investors, with gas prices expected to average $7.25/Mcf, said Raymond James analysts Monday.

Consultants at Wakefield, MA-based Energy Security Analysis Inc. (ESAI) said last week that the solid month of weakness in the crude oil market (until Friday’s spike) has kept downward pressure on natural gas prices, but fears of a cold snap and recent winter market history are expected to provide market support at around $6.50/MMBtu.

Calgary-based independent Nexen said Thursday that solid third quarter earnings, up nearly 22% over 3Q2003, were partially offset by higher exploration expenses and lower-than-expected production in North American and overseas operations.

Calgary-based independent Nexen said Thursday that solid third quarter earnings, up nearly 22% over 3Q2003, were partially offset by higher exploration expenses and lower-than-expected production in North American and overseas operations.

The cash market recorded solid rebounds at all points Thursday in what one source said was more a response to the previous day’s strength throughout Nymex’s energy futures complex than to any underlying fundamental support. A majority of gains were in the teens, with an overall range from about a nickel to a quarter.