Warns

Despite continued declines from the once prolific Ladyfern field, Canadian Natural Resources achieved higher natural gas production and set a record for gas sales in the second quarter, with credit given to its successful exploitation program in Northwest Alberta. However, an Alberta regulatory requirement to shut in some gas production beginning Sept. 1 will drop the independent’s gas production at least 15-20 MMcf/d, with another 5-10 MMcf/d loss possible, depending on an appeal now being sought by the company.

Natural gas wellhead prices will likely remain in the $5-6/Mcf range for the remainder of the year according to an updated report authored by the Michigan Public Service Commission (MPSC). The projection marks a more than 30% increase over the average price that prevailed throughout 2000 and 2001 of $3.87/Mcf.

Dynegy Inc. last week began climbing out of its deep debt-filled hole, launching a major junk bond refinancing project as well as a stock restructuring deal to pay off a credit line with ChevronTexaco Inc., its largest shareholder. If the transactions are completed as envisioned, Dynegy’s debt maturities would be “significantly” reduced over the next few years, including a portion of its recently restructured $1.66 billion credit facility and the secured financing of its Midwest generation assets.

Natural gas wellhead prices will likely remain in the $5-6/Mcf range for the remainder of the year according to an updated report authored by the Michigan Public Service Commission (MPSC). The projection marks a more than 30% increase over the average price that prevailed throughout 2000 and 2001 of $3.87/Mcf.

Noting that a normal temperature winter could bring a 20-30% increase to its customers’ natural gas bills, Piedmont Natural Gas warned that a colder than normal period could send those bills much higher.

Moody’s Investors Service on Friday assigned a “SGL-4” speculative liquidity rating to CMS Energy (CMS) because of its weak liquidity position, unregulated growth initiatives and its continued reliance on asset sales to reduce debt.

Moody’s Investors Service on Friday assigned a “SGL-4” speculative liquidity rating to CMS Energy (CMS) because of its weak liquidity position, unregulated growth initiatives and its continued reliance on asset sales to reduce debt.

Most of the world’s attention has been directed toward the security and availability of crude oil supplies, but a global energy consultant told a Senate committee this month that domestic pressure on natural gas supplies and prices “poses a greater threat to energy security and to the U.S. economy.”

As it continues its efforts to exit the wholesale marketing arena, sell assets and restructure, Aquila Inc.’s CEO last week warned that the losses will continue through this year and into 2004 as the rebuilding utility repairs its damaged balance sheet.