Strength

Despite an absence of $5 billion-plus mergers and acquisitions (M&A) in the oil and gas patch, overall deal activity is rebounding on the strength of mid-size deal flow driven largely by onshore resource plays and offshore Gulf of Mexico (GOM) economics, according to analysts at Raymond James & Associates Inc.

Prices rose at a majority of cash market points for a second straight day Thursday, and again the chief reason was prior-day strength in June natural gas futures. Quite a few points in the West provided a harbinger of what is expected in Friday’s market: major losses due to the shrinkage of weather-based load to near nothing. High-linepack OFOs by both of California’s biggest distributors contributed to overall western price weakness.

The remarkable strength of last week’s market came to an end Friday as prices fell at all points. Nearly all of the cooling load that remained in the South Friday was expected to disappear over the weekend, and although the Midwest and Plains could anticipate substantially colder weather Saturday accompanied by continued snow in some areas, a warming trend would be getting under way Sunday.

After dropping 47.8 cents last week, the May natural gas futures contract almost made it all back on Monday as traders — aided by strength in crude prices — pushed the prompt-month 46.9 cents higher to close at $9.791.

Questions surrounding the duration of the nation’s near-term cold snap continued to unravel the recent strength in natural gas futures trading on Tuesday as the December contract dropped 16.6 cents on the day to close at $7.557. The January contract, which will take over prompt-month status in overnight Wednesday trading, shaved 20.4 cents on Tuesday to finish at $7.817.

The “Big Five” U.S. producers — ExxonMobil Corp., Royal Dutch Shell, BP plc, Chevron Corp. and ConocoPhillips — together last year spent 56% of their mighty cash flow on share repurchases and dividends, but the next 20 “second tier” U.S.-based independents were quicker on their feet, outperforming the majors in exploration and development, according to a study by the Baker Institute for Public Policy.

The “Big Five” U.S. producers — ExxonMobil Corp., Royal Dutch Shell, BP plc, Chevron Corp. and ConocoPhillips — together last year spent 56% of their mighty cash flow on share repurchases and dividends, but the next 20 “second tier” U.S.-based independents were quicker on their feet, outperforming the majors in exploration and development, according to a study by the Baker Institute for Public Policy.

The growing strength of the current La Nina event will cause above-average activity during the final two months of the 2007 Atlantic hurricane season and could extend the season as well, according to weather forecasters at Colorado State University (CSU).

The growing strength of the current La Nina event will cause above-average activity during the final two months of the 2007 Atlantic hurricane season, and could extend the hurricane season as well, according to weather forecasters at Colorado State University (CSU).