Weighted

Gas-weighted Rockies producers such as Bill Barrett Corp., Questar Corp., Ultra Petroleum and The Williams Companies face margin compression in the near term while they wait for the next increments of the Rockies Express pipeline to come online at the beginning of 2008 and mid-2009, according to Raymond James & Associates Inc.

Gas-weighted Rockies producers such as Bill Barrett Corp., Questar Corp., Ultra Petroleum and The Williams Companies face margin compression in the near term while they wait for the next increments of the Rockies Express pipeline to come online at the beginning of 2008 and mid-2009, according to Raymond James & Associates Inc.

XTO Energy Inc. reported that its natural gas-weighted production in the first three months of the year jumped 10% from a comparable period in 2006 to 1.602 Bcfe/d from 1.460 Bcfe/d, powered by its leasehold in the Barnett Shale. The Fort Worth-based independent expects to sustain at least 10% production growth through the year, executives said.

Williams, whose exploration assets are weighted 99% to natural gas, expects its exploration and production (E&P) business to deliver 15-20% growth this year — but at a higher estimated cost. The Tulsa-based company cut 2007 earnings guidance by 3%, but capital expenditures were bumped up by 10% to meet the production forecast.

Williams, whose exploration assets are weighted 99% to natural gas, last year saw its U.S. proved reserves grow by 9.5%, and it replaced 216% of its wellhead production of 276 Bcfe. In the final three months of 2006, domestic output jumped 28% to 826 MMcf/d.

Citing “single-digit system weighted forecasted temperatures and below-zero low temperatures at most reporting stations in the market area,” Northern Natural Gas declared a System Overrun Limitation for Friday in all market-area zones (ABC, D and EF).

Marathon Oil Corp. last week acquired 8,700 net acres of natural gas-weighted properties in the Piceance Basin of Colorado in a cash transaction valued at $354 million. The acreage, acquired from Petroleum Development Corp. (PDC), is located in Garfield County in the Greater Grand Valley Field Complex, which is flanked by, and on-trend with, adjacent Marathon production.

Marathon Oil Corp. on Thursday bought 8,700 net acres of natural gas-weighted properties in the Piceance Basin of Colorado in a cash transaction valued at $354 million. The acreage, acquired from Petroleum Development Corp. (PDC), is located in Garfield County in the Greater Grand Valley Field Complex, which is flanked by, and on-trend with, adjacent Marathon production.

Citing forecasts of single-digit system weighted temperatures and below-zero lows at most reporting stations in its market area, Northern Natural Gas issued a System Overrun Limitation that will take effect Thursday for all market-area zones (ABC, D and E/F). It set System Management Services percentages (imbalance tolerances) of 25% for all zones.