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It’s not happy post-holiday news for natural gas bulls when a pair of analysts write in their first market note of the year that their 2007 outlook “has deteriorated substantially from what we were expecting just a few months ago.”

It’s not happy post-holiday news for natural gas bulls when a pair of analysts write in their first market note of the year that their 2007 outlook “has deteriorated substantially from what we were expecting just a few months ago.”

A huge loss on the market value of derivative contracts, coupled with write-offs for asset sales and in value of a power plant, pushed El Paso Corp. to a third quarter loss of $321 million (minus 50 cents/share), from a $214 million loss (minus 33 cents) in 3Q2004. Asset sales also sent revenue plunging 43% to $821 million from $1.4 billion.

ConocoPhillips’ natural gas marketing management team could probably write a new-and-improved version of how to succeed in the energy merchant business. In the past three years, the integrated producer has steadily grown from regional marketer to North American powerhouse, and now the company is positioning itself to become a major player in liquefied natural gas (LNG), a new market that likely will impact energy trading, a company executive said Wednesday.

ConocoPhillips’ natural gas marketing arm could write the revised version of how to succeed in the energy merchant business. In the past three years, the integrated producer has steadily grown from regional marketer to North American powerhouse, and now the company is positioning itself to become a major player in liquefied natural gas (LNG), a new market that likely will impact energy trading, a company executive said Wednesday.

Located in Mississippi Canyon Block 941, the well was drilled to a total depth of 29,100 feet to test the deeper Miocene intervals of the 1999 discovery called Mirage. The Mirage drilling program included an initial well drilled to 16,600 feet and a sidetrack that reached a depth of 22,400 feet.

Sharply lower gas and oil prices in the fourth quarter of 2001 forced Devon Energy to write down the value of its reserves by $556 million (after taxes) and take a $518 million net loss compared to $307 million in net earnings in 4Q2000. Quarterly earnings per share before special charges were 23 cents, or nearly double the average of Wall Street estimates. Despite the poor results, Devon reported record high oil and gas production, revenues and year-end reserves, mainly because of its mergers with Canada’s Anderson Exploration and Houston-based Santa Fe Snyder.

The holding companies for California’s two major utilities — one in bankruptcy and the other on the brink — belatedly last Tuesday reported multi-billion-dollar losses for 2000 after taking substantial after-tax charges in the fourth quarter because of uncollected wholesale power costs. Both indicated that California’s continuing energy crisis will impact overall financial results this year, and first-quarter earnings will need to be reported by May 15 under Securities and Exchange Commission requirements.

The holding companies for California’s two major utilities — one in bankruptcy and the other on the brink — belatedly Tuesday reported multi-billion-dollar losses for 2000 after taking substantial after-tax charges in the fourth quarter because of uncollected wholesale power costs. Both indicated that California’s continuing energy crisis will impact overall financial results this year, and first quarter earnings will need to be reported by May 15 under Securities and Exchange Commission requirements.