The combined net profit of 22 surveyed independent oil and natural gas producers rocketed to $449 million in the first quarter of this year from a deficit of $10 million in the comparable period in 2002 amid escalating gas and oil prices, according to the Energy Information Administration (EIA) in a new report.

The EIA surveyed the year-over-year financial performances of 44 independent energy companies, including 20 independent producers, 21 oil field service companies and four refiners. One of the surveyed companies, El Dorado, AR-based Murphy Oil, was counted as both an independent producer and refiner. The agency said the high earnings growth of the independent producer sector pulled up the average earnings of the 44 surveyed companies by 68% between the first quarters of 2002 and 2003.

It attributed the favorable performance of the independent producers to the steady rise in gas and oil prices over the past year. The average domestic gas wellhead price shot up by 137% between the first quarters of 2002 and 2003, from $2.34/Mcf to $5.54/Mcf, the EIA said. The first quarter of the current year marked the third consecutive period that gas prices increased, as demand expanded and storage supplies shrank, according to the agency.

Likewise, world crude oil prices jumped 62% over a year ago, going from $19.33 a barrel in the first quarter of 2002 to $31.22 a barrel in the first quarter of 2003, as a result of similar market conditions — increasing consumption and declining stocks.

The four surveyed independent refiners also had a stellar year, with reported net income rising from $4 million in the first quarter of 2002 to $33 million in the comparable period of this year, the EIA noted. A 33% increase in refining margins was credited for the ninefold hike in earnings for the group.

The oil field companies, however, saw their earnings drop 16% to $491 million over the same period, as costs outpaced revenue growth, the DOE agency said. The earnings slump occurred despite an 11% hike in the worldwide rig count from 1,933 in the first quarter of 2002 to 2,139 in the same period this year, it noted.

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