Tumble

Mirant shares fell another 14% Wednesday morning a day after the company said it would delay the release of its quarterly and year-end earnings because of an ongoing audit (see Power Market Today, Feb. 26). Mirant shares were down 23 cents to $1.39 at 2 p.m.

Despite Nymex’s nearly 20-cent tumble, spot gas prices were up sharply in many regions again on Monday. The only locations in the red compared to Friday were in Texas and parts of the Midcontinent. Meanwhile, New York and New England prices soared, at some points by more than $2 to more than $10/MMBtu.

Despite another blast of extremely cold air and an early price push to the upside, natural gas futures slipped lower Monday as traders reacted to updated weather forecasts confirming that at least a temporary warm-up is in store for much of the country. With that the February contract fell 12.8 cents to $5.396 — its lowest daily close since Jan. 14. At 89,844 estimated volume was light considering it was the third-to-last trading day before expiration-day.

After climbing to a new two-week high Friday, natural gas futures spiraled lower Monday morning as traders learned that forecasts calling for extreme cold last week have been tempered. Also at work, market-watchers agree, is residual selling following a neutral to bearish storage report released Friday.

Tengasco Inc. shares were down 11% last Tuesday but rebounded 9% on Wednesday by noon to $1.31 after the company discounted a class action lawsuit brought against it on Monday. Tengasco said the lawsuit was initiated by common stock short-sellers, who profit when share prices decline.

Tengasco Inc. shares were down 11% Tuesday despite efforts by the company to discount a class action lawsuit brought against it on Monday. Tengasco said the lawsuit was initiated by common stock short-sellers, who profit when share prices decline.

Aquila shares plummeted 35% Thursday to $2.16/share after the company suspended its dividend and announced a loss of $1.85 per share for the 2002 third quarter, compared to diluted earnings per share of $0.58 in the third quarter of 2001. Wall Street analysts had been expecting earnings of 14 cents/share for the quarter.

Shares of Allegheny Energy Inc. were off by more than an eye-popping 50% at one point last Tuesday after the company said that it is in technical default under its principal credit agreements and those of its subsidiaries, Allegheny Energy Supply Company LLC and Allegheny Generating Co., after it declined to post additional collateral in favor of several trading counterparties.

Last week’s price tumble has analysts and traders rethinking the bullish case for longer term natural gas prices. According to one top trader, should prices retreat a little more it will be time to begin purchases.