Record sales and strong growth in international networkoperations produced record financial results for UtiliCorp Unitedlast year. Earnings available for common shares were $160.5million, up 21% from $132.2 million in 1998. “A major factor in our1999 success was the 97% increase in the contribution to earningsbefore interest and taxes (EBIT) from our international networkbusinesses,” said Chairman Richard C. Green. “Results alsobenefited from a major improvement in the price of natural gasliquids, a better year in the gas marketing and trading business,and the results of our investment in Quanta Services, Inc.” Thecompany’s North America Energy Assets segment reported EBIT of$67.2 million in 1999, up $17.7 million compared to 1998. Increasedthroughput volumes, strong natural gas liquids prices and thepartial sale of an ownership interest in an independent powerproject contributed to this 36% increase in EBIT. Late in the firstquarter of 1999, a restructuring plan was implemented by Aquila GasPipeline that decreased operating expenses for the remainder of theyear. In May 1999, Aquila acquired the remaining 18% interest inAQP that it did not already own and AQP ceased trading as a publiccompany. EBIT from marketing and trading was $14.2 million, up $2.4million from 1998. Improved results in gas marketing and stronginitial results from structured finance transactions were partiallyoffset by lower results from marketing of power and hydrocarbonsand $4.7 million in costs associated with moving Aquila’s tradingoperations to downtown Kansas City. Also included in these resultswas a $19.8 million loss related to Aquila’s retail business, whichwas sold in January 2000. That business showed a loss of $6.4million in 1998. Aquila Energy sold 10.4 Bcf/d of gas last yearcompared to 9.6 Bcf/d in 1998. Power sales grew to 236.5 millionMWh compared to 121.2 million MWh

Williams reported 1999 net income of $221.4 million, or 50cents/share, compared with 1998’s restated net income of $122.3million, or 27 cents/share. “The late-year improvement in naturalgas and gas liquids markets combined with another solid year fromour natural gas pipelines were major factors in the year-over-yearturnaround in the energy segments’ profit,” said Williams ChairmanKeith E. Bailey. The gas pipeline segment reported a 1999 profit of$697.3 million, compared with $610.4 million during 1998. Theimprovement was mostly due to the benefit of additional rate refundliability reductions of $48 million, primarily reflecting 1999regulatory proceedings involving rate-of-return methodology. Thiswas partially offset by the effect of a rate settlement redesign onthe Kern River system. The pipeline segment put two major NorthCarolina expansion projects into service – the Cardinal pipelineextension and the Pine Needle liquefied natural gas peakingfacility. Energy Services reported 1999 segment profit of $529million, compared with restated segment profit of $386.1 million in1998. The increase reflected a substantial late-year improvement ingas liquids markets, improvement in gas trading activities, $45million in gains on the sale of assets and reduced losses on retailgas and electric activities. Partially offsetting the improvementswere lower results from the company’s power trading activities andits retail petroleum operations. Communications, which includes anew broadband network, single-source communications systemsintegration and multiple technology applications for businesses,reported a 1999 segment loss of $318.2 million, compared with asegment loss of $193 million during 1998. The higher segment lossis due primarily to adding the resources and infrastructurerequired to serve a growing customer base as more of Williams’national, carrier-class network is installed and lit.

New Jersey, California, Massachusetts, Connecticut, Pennsylvaniaand New York are the states with the “most open markets” for retailenergy competition, according to XENERGY, an energy consulting,information technology and energy services firm owned by EnergyEast. The firm’s top consultants released the state-by-stateratings yesterday at a conference marking the conclusion of itsRetail Energy Markets ’99 study (REM ’99). Beyond the statementabove results and recommendations are confidential and limited tothe study’s sponsors. Sponsorships are still available, the companysaid. XENERGY is now looking for sponsors for its next study, REM2000, which it will launch this spring.

Louis Dreyfus Natural Gas announced record financial resultslast year, including net income of $21.4 million, or $0.53 pershare, on total revenue of $302.6 million. It compared to a netloss of $43.3 million, or $1.08 per share, on total revenue of$293.4 million for 1998. The significant increase in earnings wasthe result of cost improvements realized during 1999, and higheroil and gas sales resulting from gas production growth and higheroil prices. Earnings for 1998 were adversely affected by impairmentcharges totaling $52.5 million which resulted primarily from lowcrude oil prices. Cash flows from operating activities (beforeworking capital changes) last year grew 19% to $171.8 millioncompared to $144.9 million for 1998, also a record for the company.Gas production averaged 296 MMcf/d day in 1999, a 7% increase inrelation to the 277 MMcf per day produced in 1998. Gas represented86% of the company’s total production for 1999. Gas productionaveraged $2.23 per Mcf, slightly lower than the $2.24 per Mcfreceived in 1998.

Founders Energy Ltd. agreed to sell certain producing assets andexploration lands located in the Peace River Arch of northwestAlberta and northeast British Columbia in two separatetransactions. The assets sold represent 14.1 Bcf of proven gasreserves, 3 MMcf/d of gas production and 30,000 net acres ofundeveloped land. Total sale proceeds from the assets of $14million will be applied to reduce the company’s bank debt. Closingof these transactions is expected to occur later this month. Thesales are part of the company’s plan to increase financialflexibility and to re-focus on core light crude oil areas in WestCentral Alberta and West Central Saskatchewan.

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