Took

The screen was back to putting on a spectacular show forwatchers again Monday. It took practically all day to get there,but the July futures contract kept pushing until it eventuallywound up at $4.398, up 35.5 cents on the day and just shy of thefinal June settlement at $4.406.

Despite 1999 production revenue increases of 51% and cash flow increases of 43%, Calgary-based Canadian 88 took a sharp hit to its bottom line by a natural gas forward sales contract, which resulted in the company posting a loss of $6.5 million ($0.06 per share). The company had reported earnings of $1.8 million ($0.02 per share) in 1998.

Despite 1999 production revenue increases of 51% and cash flowincreases of 43%, Calgary-based Canadian 88 took a sharp hit to itsbottom line by a natural gas forward sales contract, which resultedin the company posting a loss of $6.5 million ($0.06 per share).The company had reported earnings of $1.8 million ($0.02 per share)in 1998.

The New York Mercantile Exchange took two giant steps forward last week, announcing plans to become a for-profit organization and to launch a global electronic exchange for over-the-counter forward trading and clearing of a wide range of standardized physical commodity contracts.

The New York Mercantile Exchange took two giant steps forwardyesterday, announcing plans to become a for-profit organization andto launch a global electronic exchange for over-the-counter forwardtrading and clearing of a wide range of standardized physicalcommodity contracts.

The Federal Energy Regulatory Commission this week took “anothercritical step” toward providing new power generators with more”certainty and assurance” in their efforts to interconnect with thetransmission grid.

Although the tight supply/demand situation for gasoline took thespotlight in the Energy Information Administration’s Short-TermEnergy Outlook last week, the EIA was pretty bullish on natural gasas well. The administration has gas demand rising 3.5% this year to22.17 Tcf and 4.1% next year to 23.08 Tcf. It projects a major 22%wellhead price hike this year to an average of $2.56/MMBtu followedby a much smaller rise in 2001 to $2.61. EIA sees dry domestic gasproduction inching up about 1% this year and only about 0.2% in2001. Imports are seen rising 8.3% this year to 3.67 Tcf and 2.7%next year to 3.77 Tcf.

Almost a year after it entered Chapter 11 bankruptcy,Houston-based TransTexas Gas Corp.’s reorganization plan tookeffect as the company arranged $52.5 million in exit financing.TransTexas amended its existing DIP Credit Agreement and RevolvingAccounts Receivable Credit Facility, cancelled existing securitiesand issued new securities. This is the final step in emergence fromChapter 11, which began April 19, 1999.

BP Amoco’s merger with Atlantic Richfield Co. (ARCO) took a bigstep forward yesterday with the announcement the Federal TradeCommission agreed with the companies to seek adjournment of federalcourt proceedings opposing the merger. Reuters reported yesterdaythat Phillips Petroleum agreed to pay $6.5 to $7 billion for ARCO’sAlaska oil assets, which are being sold to meet the FTC’s antitrustobjections to the merger. An FTC spokesman said negotiationsbetween the commission and BP Amoco were ongoing and had no word onwhen a final announcement would be made. “We don’t know at thispoint. We really don’t. This is obviously a step in the rightdirection as far as a settlement is concerned.” BP Amoco stockclosed up $1.63 at $52.75 yesterday. ARCO closed up $4.25 at$83.25. Phillips closed down 38 cents at $39.06.