Turvy

Weathering a financially topsy-turvy 2008, Kinder Morgan Energy Partners LP (KMP) posted full-year 2008 net income of $1.3 billion, up 124% from $590.3 million in 2007, thanks in large part to the start-up of Rockies Express-West Pipeline (REX-West). However, due to some general economic factors, lower realized energy prices and “lost business” due to hurricanes, the North American pipeline transportation and energy storage company recorded 4Q2008 net income of $284.6 million, which was down 2.9% from the $293.3 million during 4Q2007.

Capping off a topsy-turvy holiday-shortened week of natural gas futures trading, the April contract attempted to work lower Thursday morning before being propped up by a fairly supportive 85 Bcf storage withdrawal report. The prompt-month contract put in a low of $8.700 before settling at the $9.065 high on the day, up 4.1 cents from Wednesday, but 81.3 cents lower than the previous week’s finish.

Following its recent track record of topsy-turvy moves, December natural gas futures on Thursday and Friday finished out the week with a rebound following a $1-plus drop that was concluded earlier in the week. The prompt-month contract recorded a high of $7.920 Friday before closing at $7.897, up 18.4 cents from Thursday but 52.1 cents lower than the previous Friday’s close.

Following a topsy-turvy day of rallies and recesses, May natural gas futures on Monday ultimately recorded a high of $7.590 before settling at $7.562, up 18.1 cents on the day. In commenting on the significant up-day, Commercial Brokerage Corp.’s Tom Saal said the move higher was actually the result of two failed attempts to break below support lines.

Following a topsy-turvy week of trade that featured a deep freeze in the Midwest and East and a mammoth 259 Bcf storage withdrawal report for the week ended Feb. 9, March natural gas futures on Friday explored higher price levels. The prompt month put in a high of $7.620 before settling at $7.503, up 21.1 cents on the day but 32.4 cents lower than the previous Friday’s close.

Despite enduring a topsy-turvy week of large swings in both directions, March natural gas futures finished the week within shouting distance of where they began. After hitting a high of $8.650 late in the afternoon, the prompt month settled at $8.613, up 26.6 cents on the day and 10.6 cents higher than the contract’s previous-week close.

Natural gas futures completed a topsy-turvy trading week on a down note Friday, pressured lower by light pre-holiday profit-taking. The January contract dropped 14 cents to close at $6.982.

California’s topsy-turvy fiscal and political climate this summer, with a $38 billion annual budget deficit still waiting to be patched over, does not immediately impact the standing of the state’s former wholesale net-short power buyer, the Department of Water Resources (DWR), but it could longer term, Standard & Poor’s Ratings Services (S&P) said Monday in a terse credit report.

In a topsy-turvy trading session conspicuous only for its lack of bullish leadership, natural gas futures slipped lower Wednesday amid two waves of long liquidation. An early afternoon rally was about all the buyers could muster, and it was overshadowed by selling at the market’s open and again heading into its close. March finished at $5.785, down 19.2 cents for the session.