Tries

Like a stunned boxer that twice tries but fails to lift himself off the mat, the natural gas futures market was unable to recover Thursday following the release of storage data from the Energy Information Administration (EIA) showing a larger-than-expected 64 Bcf injection. After dropping a cool 10 cents in 10 minutes following the report, the August contract looked like it might rebound before lunchtime. However, that rally and a similar one in the early afternoon fizzled, leaving prices to sift downward and close just off their lows. At $2.902, the August contract finished with a 14-cent decline for the session.

Like a stunned boxer that twice tries but fails to lift himself off the mat, the natural gas futures market was unable to recover Thursday following the release of storage data from the Energy Information Administration (EIA) showing a larger-than-expected 64 Bcf injection. After dropping a cool 10 cents in 10 minutes following the report, the August contract looked like it might rebound before lunchtime. However, that rally and a similar one in the early afternoon fizzled, leaving prices to sift downward and close just off their lows. At $2.902, the August contract finished with a 14-cent decline for the session.

Looking to calm investor and credit rating agency jitters about energy trading operations, Aquila, Inc. on Friday said that it estimates that 70% of its 2002 operating earnings and 75% of its 2003 operating earnings will come from the more traditional side of its business mix. The company also said it intends to maintain its dividend at $1.20 per share.

Having already put an additional $550 million behind its energy marketing business, Mirant is now working on a deal with investment bankers to further bolster its reserves.

Having already put an additional $550 million behind its energy marketing business, Mirant is now working on a deal with investment bankers to further bolster its reserves, Mirant CEO Marce Fuller told analysts the company hopes to hammer out some type of deal by this summer with a commercial or investment bank to help bolster its energy marketing and risk management business. She said the type of deal wouldn’t be known for 30-60 days. Last month, Mirant officials had mentioned the possibility of some type of joint venture with a bank or large insurance firm to support its marketing operation and free up collateral for other actions to help restore its credit rating to investment grade.

Putting aside for awhile the fact that there is 1.1 Tcf more gas in storage than at the same time last year, gas futures traders instead apparently focused on the large 190 Bcf withdrawal from storage last week that the American Gas Association reported on Wednesday. February futures prices were up in the high $2.20s during almost the entire regular trading session on Thursday before taking a sharp dive back into the high teens after 2 p.m. February ended the day down 4.3 cents at $2.185 just above its low of $2.18 and well below its high of $2.30.

Following through on previous threats of legal action, PPL Montana yesterday asked a federal court to declare efforts by the Montana Public Service Commission (PSC) to regulate sales from the company’s power plants as being unconstitutional.

Sempra Energy Trading is seeking to quash a FERC subpoena that ordered the company to submit data relevant to a hearing that is examining potential price manipulation in the California natural gas market.

Sempra Energy Trading is seeking to quash a FERC subpoena that ordered the company to submit data relevant to a hearing that is examining potential price manipulation in the California natural gas market.