Canada-based Suncor Energy (SU) reported weaker-than-expected third quarter results, hampered by lower commodity prices and higher operating expenses in its oil sands business, partly offset by increased production resulting from the Petro-Canada acquisition. Earnings per share, excluding certain items, came in at 23 Canadian cents (22 cents), below the Zacks Consensus Estimate of 31 cents. In the year-ago period, Suncor earned 87 Canadian cents (83 cents). Revenues were down marginally (by 0.8%) to C$8.4 billion.     Operating Statistics   The company reported operating earnings of C$288 million, down 64.4% year over year, while cash flow from operations dropped 49.9% from the prior-year period to C$574 million.   Production   Upstream production during August and September 2009 averaged 630,600 barrels of oil equivalent per day (BOE/d). Of this, 289,400 BOE/d came from the Petro-Canada acquisition. During the third quarter, volumes from Suncor’s legacy oil sands and natural ...

  Last Thursday, we received a mildly bearish report from the federal government’s Energy Information Administration (EIA), showing a higher-than-expected rise in natural gas supplies. Stockpiles held in underground storage in the lower 48 states rose by 58 billion cubic feet (Bcf) for the week ended October 9. This takes the current storage level to a new all-time high of 3.72 trillion cubic feet (Tcf), which is up 13.8% from last year's level and 14.6% above the five-year range (as clear from the nearby chart from the EIA). Current stocks are 450 Bcf above last year’s level and 474 Bcf above the five-year average. The inventory addition was lower than the five-year-average injection of 64 Bcf and last year's build of 81 Bcf. The relentless increase in gas storage levels has meant that with three weeks remaining in the storage injection season, stockpiles ...

Quanta Services, Inc. (PWR) signed an agreement to acquire privately-held Price Gregory Services, Inc., an energy infrastructure services provider in North America that specializes in the construction of large diameter transmission pipelines.

This transaction, which is expected to close in the fourth quarter of 2009, is valued at $350 million. Quanta will issue approximately 11.1 million shares of its common stock, valued at $250 million, and will pay approximately $100 million in cash, subject to adjustment, to the stockholders of Price Gregory.

This acquisition further strengthens Quanta's leadership position in the North American electric power transmission industry. The company said that Price Gregory will significantly expand the scale and scope of Quanta's existing natural gas operations and will position it to take advantage of the positive long-term outlook for the natural gas industry.

Quanta expects a substantial increase in revenues and earnings, strong margins, and significant free cash flows with the

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Last week, Energy Transfer Partners, L.P. (ETP) informed that it has entered into a settlement with the Federal Energy Regulatory Commission (FERC), which had accused the natural gas and propane gas distributor of unfair trading activities during Hurricane Rita in 2005. However, the partnership did not disclose the terms of the agreement as it is still subject to approval by the federal agency. The FERC had earlier alleged that Energy Transfer employed a complicated scheme to artificially suppress the price of physical natural gas at the Houston Ship Channel in September and November 2005, and then report the manipulated prices to a widely circulated trade magazine. The FERC is claiming $69.9 million in disgorgement of profits, as well as interest, and $82 million in civil penalties associated with these market manipulation claims. At the time, Energy Transfer denied any wrongdoing. We welcome the news of ...

Oil prices surpassed $73 a barrel today, hinting that once again, summer travel will be hindered by rising gas prices. Natural gas advocates are the first to say “I told you so” as they continue to vie for the importance of alternative energy, not only for cost savings, but for environmental purposes as well.

One obvious benefit of natural gas over oil is cost. Natural gas is generally cheaper than oil and the price isn’t influenced by international voice, as they are determined regionally. Also, in its basic form, natural gas doesn’t need refining, eliminating the refining costs of crude oil in its conversion to motor fuel.

In the middle of a recession, every attempt to save money without sacrificing quality deserves recognition. Energtek Inc. (EGTK) is engaged in developing and commercializing Absorbed Natural Gas (ANG) technology, which allows for the storage of comparable gas

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Sempra Energy Reports Higher EPS on Lower RevenueSempra Energy (SRE) announced improved financial results for its 1st quarter ended March 31, 2009.Amazingly, the company's mixed results for the quarter yielded significantly improved earnings from a nearly comparable decline in revenues.Revenues for the reported quarter decreased 35.5% to $2.1 billion from $3.3 billion recorded in the earlier-year quarter.Net income for the reported quarter increased 40% to $316 million, or $1.29 per diluted share ($1.31 basic), compared to $242 million, or $0.92 per diluted share ($0.94 basic), in the prior-year quarter.Operating cash flow in the 1st quarter of 2009 increased primarily due to higher net income and positive changes in other working capital components, partially offset by higher equity earnings. Previously, impressive operating and financial results in 2007 and 2008, driven by strong cash flow from non-core asset sales at ...

While history has shown us that there shouldn’t be much correlation between the stock and commodity markets, the current inter-connectedness between the two at the moment is still very evident. We’re still seeing large, intra-day and intra-week price swings, most of it coming on the heels of stock market moves. 

So much for history.

It makes more sense to focus on the present - and that means taking what the market gives us. With commodities, that’s a hearty dose of volatility…

Another Chance To Go Long On Natural Gas

The natural gas market giveth and then taketh away.

We’ve been bullish on the natural gas market since the price hit a long-term support level near the $4.500 per MMbtu mark a few months back. Since making a new low price of $3.740 (based on the May 2009 futures contract) on March 18, the futures blasted higher by 1,000 ticks and reached a high of $4.750.

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Industrial Production decreased -0.6& in November to an index value of 106.1 (2002=100) following a 1.5% increase in October. Analysts expected a 0.7% reduction in the index.  Manufacturing production dropped 1.4%, despite a resolution of a strike in the commercial aircraft industry early in the month. The output of mines increased 2.5%, primarily as a result of a further post-hurricane recovery in crude oil and natural gas operations in the Gulf of Mexico.  Over the past year, the Industrial Production index decreased5.55%, largely due to declines in construction and mining activity. 

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Suncor Energy, Inc. (SU) saw growth in the second quarter as evidenced by net earnings of $829 million, beating last year’s $738 million. The company’s earnings per share are expected to grow by 10% over the next 3 - 5 years, which is ahead of the industry average of 8%.

Company Description

Suncor Energy is an integrated energy company strategically focused on developing one of the world’s largest petroleum resource basins, Canada’s Athabasca oil sands.

Growth in the Second Quarter

In late July, Suncor posted net earnings of $829 million, beating last year’s $738 million.

The company noted that the growth in earnings was primarily due to improved price realizations on oil sands products as benchmark crude prices rose to historically high levels, and strong results from natural gas operations.

“A combination of a very cold winter, unplanned maintenance issues and tight bitumen supply made for a difficult start to the year,”

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Capital City Energy Group, Inc. announced today that it will be hosting a conference call on Thursday, August 21, 2008 at 2:00 PM EST. Tim Crawford, Chief Executive Officer of Capital City Energy Group, as well as other executives will discuss financial results for the period ended June 30, 2008 and other related matters.

Those who wish to participate should dial 1-866-706-1343, then enter the Conference Entry Code: 652022. Those who are unable to attend the conference call at the scheduled time can listen later by dialing 1-800-332-6854 or 1-973-528-0005, then using the entry code: 652022. The digital replay will be available until September 2, 2008.

Capital City is a Columbus, Ohio based incorporation committed to growing its diverse oil and natural gas operations. The company is focused on growing a portfolio of core areas that provide growth opportunities through grass-roots drilling, operating, service companies,

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