EEX Corp., headquartered in Houston, reported third quarter 2001 net income of $16 million, or $0.39 per share, compared to a net loss of $2 million, or ($0.04) per share for the third quarter of 2000. The current quarter’s net income includes net after-tax gains from the sale of assets of $20 million in assets, primarily arising from the sale of the Llano Field in September 2001. Excluding these gains on asset sales, the third quarter of 2001 resulted in a net loss of $4 million or ($0.09) per share. Revenues for the third quarter of 2001 were $48 million, compared to $66 million for the same quarter last year. Natural gas production volumes were 122 MMcf/d, 17% lower quarter-to-quarter, primarily as a result of the sale of the offshore Gulf of Mexico shelf properties in December 2000. Average natural gas prices also were 11% lower quarter-to-quarter. The company produced approximately 11 Bcf during the third quarter of 2001 and received an average price of $2.89/Mcf, compared to 14 Bcf and $3.25/ Mcf in the third quarter of 2000. Crude oil production was down 6% and average prices decreased 24% quarter to quarter. Expenses for the third quarter of 2001 were $41 million, compared to $52 million for the same period of 2000, excluding the impact of asset sales in each period. CEO Tom Hamilton noted that EEX’s average total production from onshore U.S. business rose 7% from the first quarter to 130 MMcfe/d during the third quarter, and that “practically all of our capital spending during the third quarter was invested in development of our onshore properties.” He said the drop in natural gas prices will “likely” cause the company to defer some capital spending in the onshore program until prices improve.

Houston Exploration Co. reported third quarter net income of $22.5 million, or $0.73 per share on a fully diluted basis. Net income for the nine months ended September 30, 2001, was $105.7 million, or $3.45 per share on a fully diluted basis. This compares with third quarter 2000 net income of $19.7 million, or $0.66 per share on a fully diluted basis, and net income for the corresponding nine-month period of 2000 of $44.4 million or $1.60 per share on a fully diluted basis. Production for the third quarter of 2001 was 22.0 Bcfe, a 15% increase over the 19.1 Bcfe produced in the third quarter of 2000. The Houston-based company also reported that its average realized gas price in the third quarter of 2001 was $3.53/Mcf compared with $3.24/ Mcf in the third quarter a year ago. For the nine months of 2001, the average realized gas price was $4.53/Mcf compared with $2.88/Mcf for the nine months of 2000. Approximately 97% of Houston Exploration’s 2001 production is natural gas.

Calgary-based Shell Canada Ltd. saw its third quarter earnings recede to C$172 million or C63 cents per common share compared with earnings of C$226 million or C82 cents per share for the third quarter of 2000. Earnings for the first nine months of 2001 were C$840 million or C$3.05 per share compared with C$562 million or C$1.98 per share for the same period in 2000. The improvement came from higher natural gas prices in its resources unit and increased refining margins in the oil products unit in the first half of 2001. Cash flow from operations for the first nine months of 2001 was C$1,173 million, up from C$806 million for the same period in 2000. Capital and exploration expenditures to September 30 were C$1,441 million compared with C$711 million for the same period last year. Spending in the first nine months of 2001 included C$1,098 million on the Athabasca Oil Sands project compared with C$479 million in the same period last year. CEO Tim Faithfull said weakening economic conditions could impact the company’s future earnings, and that even though the company is meeting “major milestones…we face significant challenges. We are making every effort to manage these challenges and deliver a successful project.”

©Copyright 2001 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.