Chesapeake Energy Reports Strong Revenue On Natural Gas Hedges

Chesapeake Energy Corp. (NYSE CHK) announced on Thursday that its adjusted third-quarter earnings climbed 47 percent.

CHK, which is the largest natural gas producer in the U.S., reported $486 million, or 85 cents a share, for the quarter ended Sept. 30, compared with $346.3 million, or 72 cents per share, a year ago.

Year to date, Chesapeake said it has made $1.5 billion, or $2.73 per share, compared with $1.1 billion, or $2.10 per share, a year ago. Revenue rose to $8.6 billion for the year from $5.7 billion.

Revenue nearly quadrupled to $7.5 billion in the quarter because of the hedges from $2 billion a year ago.

Natural Gas Inventory Report 10-30-08

Working gas in storage was 3,393 Bcf as of Friday, October 24, 2008, according to EIA estimates. This represents a net increase of 46 Bcf from the previous week. Stocks were 97 Bcf less than last year at this time and 97 Bcf above the 5-year average of 3,296 Bcf. In the East Region, stocks were 84 Bcf above the 5-year average following net injections of 19 Bcf. Stocks in the Producing Region were 3 Bcf below the 5-year average of 941 Bcf after a net injection of 20 Bcf. Stocks in the West Region were 16 Bcf above the 5-year average after a net addition of 7 Bcf. At 3,393 Bcf, total working gas is within the 5-year historical range.

Natural Gas Inventory Report 10-23-08

Working gas in storage was 3,347 Bcf as of Friday, October 17, 2008, according to EIA estimates. This represents a net increase of 70 Bcf from the previous week. Stocks were 77 Bcf less than last year at this time and 93 Bcf above the 5-year average of 3,254 Bcf. In the East Region, stocks were 88 Bcf above the 5-year average following net injections of 40 Bcf. Stocks in the Producing Region were 8 Bcf below the 5-year average of 926 Bcf after a net injection of 26 Bcf. Stocks in the West Region were 13 Bcf above the 5-year average after a net addition of 4 Bcf. At 3,347 Bcf, total working gas is within the 5-year historical range.

Russia, Iran and Qatar Seek Natural Gas Cartel

Russia, Iran and Qatar made the first serious moves Tuesday toward forming an OPEC-style cartel on natural gas, raising concerns that Moscow could boost its influence over energy markets spanning from Europe to South Asia.

The 27-nation European Union expressed strong opposition to any natural gas cartel Tuesday, with an EU spokesman, Ferran Tarradellas Espuny, saying: "The European Commission feels that energy supplies have to be sold in a free market."

Together Russia, Qatar and Iran account for nearly a third of world natural gas exports — the vast majority supplied by Russia — according to U.S. government statistics. The three hold some 60 percent of world gas reserves, according to Russia's state-controlled energy company Gazprom.

The United States — the world's largest consumer of oil and gas — produces most of its natural gas needs at home, importing only from Canada and Mexico.