After halting a three-day, 25-cent price slide Tuesday, naturalgas futures slowly began to build yesterday what bulls would liketo think is a base on which further gains will be added. Andalthough it is far from universal, that sentiment was echoed byothers who think that the confluence of relatively strong cashprices and rallying crude oil prices are supportive factors fornatural gas. The April contract finished 3.1 cents higher at $1.748in light trading.
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Third Man Named in Coastal Fraud Complaint
The Commodity Futures Trading Commission (CFTC) and the U.S.Department of Justice are now after three people for allegedlymisappropriating energy futures trades from Coastal, defrauding thecompany of millions of dollars. Robert C. Rossi joins formerCoastal States Trading Corp. employee Steven G. Soule; and Kyler F.Lunman II, owner of Hold-Trade Inc. (Ltd.) as a respondent in thecase.
Williams to Supply Gas and Market Power for AES Plant
Similar to a deal the two companies made last May involvingthree power plants in the Los Angeles Basin, Williams and AESforged an agreement last week in which Williams will supply thefuel and market the power produced from an AES-built and -operatedpower facility in Pennsylvania. The AES Ironwood plant will belocated in South Lebanon Township and will have a capacity toproduce 700 MW. Financial terms of the transaction were notdisclosed.
Friday’s Sell-Off Erases Early-Week Advances
Following three straight days of advances the bears reclaimedthe futures market last Friday when early selling pressure piercedthrough several interim levels of support. From that point the routwas on as the February contract plummeted sharply lower inafternoon trading. Only the final bell could halt the decline thatleft the prompt month down 11.4 cent to $1.778.
Williams Earnings Fall Short in ’98
None of Williams’ three main subsidiaries matched 1997 earningslevels, the company said Thursday, as it announced a total 1998 netincome of $140.7 million, or $0.31 per diluted share, down from$368.3 million, or $0.85 per diluted share in 1997. For the fourthquarter, Williams posted a net loss of $20.2 million or $0.05 perdiluted share versus a net income of $57.5 million or $0.13 perdiluted share in 1997. Company officials blamed poor marketconditions, large accrual and impairment amounts, and disappointingresults in the communications business as reasons for the poorperformance.
TRC Seeks Legislative Relief for Producer
Seeking emergency relief for Texas oil and gas producerssuffering from low commodity prices, the three-member TexasRailroad Commission (TRC) last week voted to propose statelegislation to suspend severance tax payments when the price foroil and gas drops below $15/barrel of oil or $1.50/Mcf of naturalgas as determined by the Comptroller of Public Accounts
Price Data of NGI and Others ‘Reliable,’ Joint Study Says
A joint study to be released today reveals that the price datareported by the gas industry’s three major publications – NaturalGas Intelligence, Inside Ferc and Gas Daily – is both consistentand reliable.
December Futures Recoup a Fraction of Prior Value
After a tempest of trading activity during the first three daysof the week, the futures market settled down Thursday to trademostly sideways amid light volume. Moderate trade-buying below the$2.32 level was the most notable feature of the day. But that wasenough for December to post an up-day-marked by higher highs andhigher lows-to start off its tenure as prompt month. The contractsettled at $2.348, a 2.4 cent gain for the session.
More Majors Report Major Earnings Declines
Third quarter earnings announced by three more major producersThursday showed income declines from the previous third quarterranging from 37% to 79%. Not surprisingly, Shell, Chevron, andPhillips Petroleum all cited weak commodity prices for their poorperformances.
Williams-Transco Plotting Coastal Invasion of Florida
Florida Gas Transmission may not be the only interstatetrunkline in Florida if Williams-Transco succeeds in its plan foran underwater pipeline from offshore Mobile Bay through the Gulf ofMexico to landfall near Tampa on Florida’s southwest coast.