Spiked

Burlington Resources’ second quarter earnings spiked 145% to $231 million, or $1.10/share, while its discretionary cash flow grew 65% to $557 million on strong natural gas prices. During the quarter, the company’s gas production was basically flat at 1,945 MMcf/d. Oil production declined to 69,600 b/d from 79,300 b/d in 2Q2000. However, realized gas prices soared. Natural gas price realizations rose to $4.10/Mcf from only $2.75 in 2Q2000, while oil prices were only about a dime stronger at $24.92/bbl.

Burlington Resources’ second quarter earnings spiked 145% to $231 million, or $1.10/share, while its discretionary cash flow grew 65% to $557 million on strong natural gas prices. During the quarter, the company’s gas production was basically flat at 1,945 MMcf/d. Oil production declined to 69,600 b/d from 79,300 b/d in 2Q2000. However, realized gas prices soared. Natural gas price realizations rose to $4.10/Mcf from only $2.75 in 2Q2000, while oil prices were only about a dime stronger at $24.92/bbl.

Business customers of the investor-owned utilities in California are increasingly concerned about the lingering energy crisis that has spiked electricity and natural gas prices and fomented uncertainty about supplies, according to an analysis by the Los Angeles County Economic Development Corp. (LAEDC).

Propelled by heavy market-on-close (MOC) buying, natural gasfutures spiked to a new all-time high yesterday, as commercialtraders hedged their financial swap positions. After gapping higheron the open, the January contract rallied to $9.90 on rumors thatthere would be commercial buying at the close. Those rumors turnedout to be true and after sinking lower for much of the session, theprompt month raced back to $9.90 moments before the closing bell.January finished at $9.83, up 50.4 cents on the day.

For the fourth morning in a row, gas futures spiked higher onlyto come crashing down as long traders liquidated their positions inan effort to avoid margin calls on their positions. Includingyesterday’s margin hike, the exchange has raised margins on fivedifferent occasions in the past three weeks, resulting in anincrease for its customers from $5,670 (on Nov. 17) to $13,500.

Boosted by what may be the most bullish weather forecast to hitthe industry in years, natural gas futures spiked dramatically inmultiple buying surges Sunday night and Monday morning as traderspressed the envelope of their long exposures.

In almost an exact blueprint of Friday’s topsy-turvy session,natural gas futures spiked then retraced yesterday as tradersdigested the latest weather news. After gapping higher at the openand putting in a fresh one-month high at $4.43, the Septembercontract succumbed to profit-taking which ushered the prompt monthlower at the close. September finished at $4.348, up 5.2 cents forthe session, but just a fraction of a cent above its low on theday.

Feeding off Wednesday’s strong close, natural gas futures spikedhigher yesterday morning, but ultimately finished lower in anextremely quiet session. After notching a new life of contract highat $2.90 shortly before noon (EST), April was hit with light profittaking which demoted the contract to $2.851, a 1.5-cent loss forthe session.

Punctuated by a gut-wrenching final 45 minutes in which the spotcontract plummeted, spiked and then fell again, natural gas futuresfinished on a strong note yesterday in a classic short-coveringrally.