Times

In light of the huge capital expenditures and long lead times for liquefied natural gas (LNG) projects, as well as LNG supply constraints, energy industry experts and analysts told a joint House-Senate panel last Thursday that U.S. gas prices will remain at lofty levels throughout most of the current decade.

In light of the huge capital expenditures and long lead times for liquefied natural gas (LNG) projects, as well as LNG supply constraints, energy industry experts and analysts told a joint House-Senate panel Thursday that U.S. gas prices will remain at lofty levels throughout most of the current decade.

Three times on Tuesday, the natural gas futures market tried to rally above Monday’s spike high, but each time the market fell short, opening the door for commercial and local traders to punish the market lower. Selling was also seen from selected fund traders who view the market as overvalued from a fundamental perspective.

Houston-based Contango Oil & Gas Co. reported third quarter net income of $2.9 million (31 cents/share), which was 10 times higher than net income of $216,900 (2 cents) for the same period of 2002. Natural gas and oil sales for the quarter were $8.3 million, compared with $7.1 million a year earlier. Current CEO Kenneth R. Peak, along with Jay D. Brehmer, Joseph S. Compofelice and Darrell W. Williams, also have been unanimously re-elected directors of the company for a one-year term. Peak noted that the company has five onshore exploration programs ongoing in south Texas and expects two of its deep shelf prospects in the Gulf of Mexico to spud before the end of the year. Its East Breaks lease blocks, which were recently awarded, represent the company’s entry into the deepwater Gulf of Mexico exploration region. Current production is averaging approximately 16,000 MMBtu/d. Contango’s bank line currently is $14.6 million, with unused availability of $7.5 million. Contango also owns a 10% partnership interest in a proposed liquefied natural gas import facility in Freeport, TX.

Dynegy Inc. shares tumbled sharply last week, dipping to less than $3 at times, after the company cut its full-year earnings guidance estimate to ($0.07) to $0.01 per share from the $0.10 to $0.18 per share it predicted in April and reported that its liquidity position fell about $364 million since last month to $1.7 billion, including $644 million in cash.

With its latest expansion running full and at times over-capacity, Kern River Gas Transmission is considering another 500 MMcf/d expansion of its line from the Rockies to California, Kirk Morgan, pipeline vice president, told Rocky Mountain producers in Denver Wednesday.

A claim by a former employee for the Financial Times’ (FT) subsidiary Resource Data International (RDI) Monday before a California state Senate committee alleging that FT’s Gas Daily natural gas price index was manipulated by traders, brought a prompt retort from Gas Daily’s current owner that the account was a “misrepresentation of the facts.”

It didn’t take a millennium; it just seemed like it at times. Finally, after years of controversy over its route, including protestors on FERC’s doorstep, the Commission last week approved the U.S. leg of the Millennium Pipeline, a 424-mile line from the Canadian border under Lake Erie to the New York City market area, originally proposed in December 1997 [CP98-150].

It didn’t take a millennium; it just seemed like it at times. Finally, after years of controversy over its route, including protestors on FERC’s doorstep, the Commission Wednesday approved the U.S. leg of the Millennium Pipeline, a 442-mile line from the Canadian border under Lake Erie to the New York City market area, originally proposed in December 1997 [CP98-150].