Tumble

After watching its stock price tumble this week following negative news about off-balance sheet transactions allegedly similar to those made by bankrupt Enron Corp., El Paso Corp. took drastic action Wednesday, announcing a plan to strengthen its capital structure and enhance its liquidity. The company’s stock price rose sharply following the announcement, ending the day up nearly 5% to $41.07, but investors were keeping a watch on reports from Washington indicating the Securities and Exchange Commission probably will take a much tougher stand on energy company accounting practices in the future (see related story).

Williams shares were volatile last week, as investors weighed the potential impact of its former communications subsidiary, Williams Communications (WCG), considering filing for voluntary Chapter 11 bankruptcy reorganization. WCG said it was considering bankruptcy as one potential option in its financial restructuring effort. Williams already is examining the possibility that it will be obligated to cover WCG’s $2.2 billion in debt if the communications company defaults on its loans.

Williams’ share price tumbled 10% to $14.66/share by mid-day Monday following an announcement by its former communications subsidiary, Williams Communications (WCG), that it will include voluntary Chapter 11 bankruptcy reorganization as a potential option as part of its financial restructuring plan. Williams already is examining the possibility that it will be obligated to cover WCG’s $2.2 billion in debt if the communications company defaults on its loans.

After pushing higher but failing to fill in a key gap on thedaily chart, the March contract sifted lower yesterday as tradersset their sights on stubborn support in the $5.62 area. As it turnsout, $5.62 was little more than a speed bump as prices dippedeasily below that level in a post-AGA sell-off. The March contractwas hit the hardest, tumbling 50.1 cents to close at $5.518.

Pressured by a triumvirate of bearish factors — weather,technicals and cash prices — natural gas futures plodded lower inan abbreviated, pre-holiday session Friday as weak longs continuedto shed their positions. However, instead of liquidating theirlongs entirely, traders elected to roll their prompt holdings intoout months. At the closing bell, the February contract was 23.6cents lower at $8.472 while the summer strip (Apr.-Oct.) was 6.7cents higher on the day at $6.085.

After watching the market tumble almost 85 cents from its highsin just a week and a half, bargain hunters were back at it againMonday, lifting natural gas prices back above the psychologicallyimportant $5.00 level. After checking down to $4.86 and etching itslowest mark since Sept. 1, the November contract rallied late inthe session to close 13.5 cents higher at $5.072.

After watching prices tumble 10% last week, bears in the naturalgas pit were content to cool their heels Friday in an amazinglyquiet trading session. The November contract slumped just 1.4 centsto close at $4.937 Friday after trading within a tight, 13-centtrading range. Estimated volume was light, with just 63,929contracts changing hands.

For the second Wednesday in a row, natural gas prices were hitwith a wave of selling seconds after the release of fresh storagenews. However, whereas the market closed on its daily lows lastWednesday, it finished on its highs yesterday as bargain huntinglifted the November contract almost 15 cents above its $5.15 lowWednesday.

After watching the market tumble 7.1 cents lower Monday, naturalgas bulls at the New York Mercantile exchange dug in their heelsyesterday as prices careened off support in the low $2.70s andmoved higher throughout the session. By virtue of its 3.7-centadvance and $2.751 settlement, the April contract nudged its wayback up well within the $2.67-90 trading range that has limitedprice movement since March 1. The May contract followed suit,trading up 3.7 cents to finish at $2.781, in a session that sawmoderate activity of 57,862.