Third

In a strategic deal that would create the world’s third-largest offshore driller, Pride International agreed to buy Marine Drilling Cos. for $1.92 billion in an all-stock deal Thursday. The new company, to be called Pride International, has already received approval by both boards.

After failing for the third day in a row to sustain a move beneath $4.20, natural gas futures rallied yesterday as traders began to cover shorts initiated during the recent price erosion. At the closing bell, the June contract was 14.6 cents higher at $4.348.

After gapping lower at the open, natural gas futures tumbled lower for the third day in a row and the sixth out of seven sessions as traders tested the bottom end of the market’s eight-week trading range. However, when the dust had settled and the orders counted at Nymex, it was clear that support had held, leaving traders slightly bullish heading into today’s expiration. On its penultimate day, the May contract closed 9.7 cents lower at $4.981, about 42 cents below where it was when it began its tenure as prompt month.

Where’s that scorecard? It’s never around when you need it. By our count there are now three new proposals on the Canadian side to upgrade service through southern British Columbia and into the U.S. Pacific Northwest. Westcoast Energy entered the Northwest expansion lists last week with an announcement of an open season to run through the end of May for more capacity on its Southern Mainline and Westcoast Alberta line to accommodate additional volumes from supply areas in British Columbia, Alberta and the Northwest Territories.

Where’s that scorecard? It’s never around when you need it. By our count there are now three new proposals on the Canadian side to upgrade service through southern British Columbia and into the U.S. Pacific Northwest. Westcoast Energy entered the Northwest expansion lists last week with an announcement of an open season to run through the end of May for more capacity on its Southern Mainline and Westcoast Alberta line to accommodate additional volumes from supply areas in British Columbia, Alberta and the Northwest Territories.

The third time was a charm yesterday for bulls in the natural gas pit. After slipping lower Tuesday and Wednesday after two straight higher opens, gas futures added to early gains Thursday as traders rallied amid bullish weather news and technical factors. Gains were almost uniform across the front months, with summer strip advancing 24.3 cents to close at $5.502. The May contract, meanwhile, was 24 cents stronger at $5.422.

El Paso Merchant Energy, declining to match bids for aboutone-third of the capacity on its affiliate El Paso Natural GasPipeline into California, “passed up a short-term profit” (and morecontroversy) to focus on “building our long-term relationship withour California customers,” according to spokesman Mel Scott.

After tumbling lower for the third Monday in a row, natural gasfutures rebounded yesterday, as buyers were once again willing tosupport the market near the $5.70 level. The March contractreceived the biggest boost, shuffling 19.8 cents higher to finishat $6.019. Most of the gain was notched late in the session, as ashort-covering rally propelled prices by more than a dime higherafter 2:30 p.m. (ET).

As the state faced the threat of a third day of rollingblack-outs Friday, the California government enacted legislationproviding $400 million to the state water resources agency so itcan substitute for the two failing utilities, Pacific Gas &Electric and Southern California Edison, in buying bulk power forconsumers in northern California.