Just thought I'd check in and see if anyone is still alive. I actually sold a little CSPLF a couple of months ago at $5.50 so I could raise some cash for the CCO rights offering. I did it based on my assumption that both of these companies would find ways to delay fruition of their legal cases and manage to snatch defeat from the jaws of victory. I probably have 25% of my net stock portfolio devoted to these two stocks. Anyway, the CSPLF stock price appears to be trending down towards the rights offering price and I hope it is not going to go below the offering price like CCO did. I still believe that both companies have a very good chance of winning in their respective court cases, but it is problematic as to how and when they are going to close out these cases. I'm lumping the two companies together because they have overlapping managements and seem to be pursuing very similar policies as far as financing is concerned.
Anyway I saw this news article on natural gas and I though I would post it here for information:
EEA - Henry Hub Gas Prices To Remain Above $4.00/MMBtu At Minimum This Coming Winter, With Upward Potential Of $6.00/MMbtu
11/7/2000
ARLINGTON, Va., Nov 7, 2000 (BUSINESS WIRE) -- Natural gas prices are likely to be very high and volatile over this coming winter as supply struggles to keep up with demand in the current, and projected tight supply/demand balance, according to Energy and Environmental Analysis, Inc.'s (EEA) November Monthly Gas Update. Based on its latest analysis of market behavior for different weather scenarios, EEA attaches a 50 percent probability to Henry Hub prices that will average $5.00/MMBtu over this coming heating season.
On the other hand, "a winter that is 5 percent colder than the average winter over the past 30 years will yield $6 gas," said Kevin Petak, director at EEA. The analyst attaches a 20 percent probability to this scenario.
"Because the supply/demand balance is very tight, gas storage will be heavily relied on to maintain system reliability and keep prices in check," Petak said. "As a result, storage is likely to be drawn down to very low levels." The analyst explains that a winter that reflects the average of the season's temperatures over the past 30 years will draw U.S. working gas down to about 500 Bcf by the end of March.
EEA attaches a 20 percent probability to working gas levels below 200 Bcf by the end of winter. And as a result of the tight balance, there is only a 25 percent chance that U.S. working gas will exceed 750 Bcf at the end of March, the lowest level reported by the Energy Information Administration (EIA) over the past 5 years.
"The heavy withdrawals of gas storage that occurred last winter are likely to repeat this winter, but the amount of gas to work with is more limited this year," Petak said.
EEA is an industry leader in energy market and environmental analysis since 1974, providing market analysis for private sector companies and industry associations such as the National Petroleum Council (NPC) and GRI. For a copy of EEA's Monthly Gas Update, and information on other EEA services, please visit EEA on the Internet @ www.eea-inc.com.
CONTACT: EEA Kevin Petak, Director, 703/528-1900 kpetak@eea-inc.com
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