With little change in overall weather fundamentals over the weekend, the cash market generally emulated the screen Monday and sat back to await further developments. Most points were about a nickel or less up or down from flat; larger gains and losses were few, scattered and capped at 15-20 cents or so.
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Futures Continue Higher as Lili Stays Her Bullish Course
Natural gas futures were off to the races Monday morning as traders weighed the virtual certainty that Hurricane Lili would become the second storm in a week to impact production in the Gulf of Mexico. After gapping higher at the opening bell, the November contract quickly moved to a new four-month high (Access trading excluded) at $4.195 Monday morning. After dipping slightly to settle for the regular session at $4.138, the November contract was rebounding in overnight access trading. At 7:00 p.m. EDT, it last traded $4.194, up 5.6 cents from its close.
FPL Stays Positive Despite Sizeable Energy, Telecommunications Charges
Juno Beach, FL-based FPL Group Inc. said late last week that it is restructuring its wholesale energy and telecommunications businesses in response to current challenging market conditions. In connection with the announcement, FPL said it expects to take one-time, non-cash restructuring and other charges in the range of $140 million to $175 million after tax in the third quarter. Despite the charges, the company reaffirmed that it expects 2002 earnings of $4.70-4.75 per share, excluding nonrecurring items.
UBS High Bidder for Enron Trading Unit; SEC Expands Probe; Case Stays in NYC
UBS Warburg, a subsidiary of Switzerland-based UBS AG, beat out Citigroup as high bidder for Enron Corp.’s once mighty wholesale energy trading unit, according to an announcement Friday by the U.S. Bankruptcy Court of New York, which also ruled against moving the case to Houston. No details of the bid were released. Bankruptcy Judge Arthur Gonzalez has scheduled a hearing at 2 p.m. EST on Thursday (Jan. 17) to consider final approval for the transaction.
Pattern of Generally Moderate Declines Stays in Play
With little to no change in fundamental conditions and energy futures continuing to point downward, the cash market saw no reason to vary Wednesday from Tuesday’s precedent of mostly moderate declines. General price movement was more homogenized across regions yesterday, as drops of about a nickel to 20 cents or so characterized the softening for all but a few points.
SSB Lowers Gas Price Outlook, Merrill Lynch Stays Firm
Following recent movement by some of their peers, top industry analysts with Salomon Smith Barney (SSB) and Merrill Lynch downgraded their 2002 forecasts for several U.S. exploration and production (E&P) company stocks late last week. SSB’s Robert Morris also decided to lower his natural gas price forecast for 2002, while Merrill Lynch’s Donato Eassey stuck to his gas price projections.
Market Stays Soft With Few Positive Signs in Sight
Bears continued to roam the gas price woods Tuesday in nearly all markets. Overly warm and power-short California was the major exception where prices for deliveries at the PG&E Citygate and at the Southern Border into PG&E were up sharply.
Most of Aftermarket Stays Firm for Weekend
Except for declines at several of the highest-priced westernpoints, the cash market stayed in an upbeat mood Friday. Gainsranged from about a dime to more than 30 cents, with most between20 and 30 cents. Malin joined the three primary Pacific Northwestpoints (Sumas, Stanfield and Kingsgate) in falling from their loftyheights.
Shell Named GA’s Supplier of Last Resort as Peachtree Stays Afloat
The maelstrom in Atlanta Gas Light’s deregulated gas poolcontinued last week as regulators scrambled to find a replacementsupplier of last resort when the utility concluded it was unable tohandle the role. After an urgent 24-hour RFP, the state’s PublicService Commission (GPSC) selected Shell Energy Services to performthe function through April 1.
Cash Stays Mostly Flat Amid Bearish Conditions
Bears came out of the gate in force Thursday in reaction to ahigher than expected 91 Bcf storage injection, a plummeting futuresscreen and cooling temperatures in the Northeast. But for all thesound and fury most points stayed flat to Wednesday’s results orregistered minuscule drops of a penny or so.