Together

Two “bullish surprises” arrived this fall: a bit colder than expected temperatures and an “extremely” low level of liquefied natural gas (LNG) imports, which together suggests that Henry Hub prices for the first quarter of 2008 may be higher than a year ago.

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.

With a sharper focus on its North American operations, Devon Energy Corp. exceeded Wall Street forecasts Wednesday, increasing its natural gas-directed production by 16% and upping its profits by 5.2% from a year ago.

Houston-based Eagle Rock Energy Partners LP has strung together a series of privately negotiated transactions to strengthen its midstream and upstream businesses in Alabama and Texas. The transactions, valued at $420 million total, also are expected to enable the partnership to nearly double its distributable cash flow this year.

Anadarko Petroleum Corp. and Chesapeake Energy Corp. together plan to explore more than one million gross acres in the Deep Haley area of the Delaware Basin in West Texas, a tight-gas play said to hold two-to-four times higher natural gas-in-place estimates than the Barnett Shale.

Houston-based Eagle Rock Energy Partners LP has strung together a series of privately negotiated transactions worth about $420 million that are expected to strengthen its midstream and upstream businesses in Alabama and Texas. The transactions also will enable the partnership to nearly double its distributable cash flow this year.

When natural gas buyers and sellers get together at an industry conference, it’s a good bet that many will have been on either side of numerous deals throughout their careers. Bill Griffith, Midwest regional director for BP Gas & Power, told GasMart 2007 attendees in Chicago last week that many of his gas customers have worked in the energy patch on the marketing and trading side. “They’re pretty smart; they know all our stories,” he quipped.

When natural gas buyers and sellers get together at an industry conference, it’s a good bet that many will have been on either side of numerous deals throughout their careers. Bill Griffith, Midwest regional director for BP Gas & Power, told GasMart 2007 attendees in Chicago Friday that many of his gas customers have worked in the energy patch on the marketing and trading side. “They’re pretty smart; they know all our stories,” he quipped.