The New Power Co. (TNPC), the first nationally branded providerof electricity and natural gas to residential and small commercialcustomers in the United States, reported yesterday that itsrevenues derived from the sale and delivery of the commodities toretail customers during the third quarter for 2000 was $18.2million. Gross profit for the new company was $1.3 million (7.2% ofrevenues). The net loss for the quarter was $69.9 million, or $2.96per basic share, based on 23,581097 weighted average common sharesoutstanding. “This was a quarter of important progress for The NewPower Company, as we achieved both our overall financialperformance targets and business objectives,” commented H. EugeneLockhart, CEO. “Additionally, the successful completion of our IPOjust after the close of the quarter enabled us to raise $546million, firmly positioning New Power as the first mover inestablishing a national brand to address the $150 billionderegulating electric and natural gas marketplace for residentialand small commercial customers.” The company hopes to achieverevenues of $60 to $63 million for the fourth quarter, with ayear-end customer count in the area of 340,000.

UtiliCorp reported that its earnings available for common sharesfor the third quarter were $74.9 million, reflecting contributionsfrom Aquila Energy and international businesses. Earnings availablefor common shares a year ago for the third quarter were $42.5million. Sales for the quarter were $8.1 billion, up 25% from $6.5billion a year earlier. UtiliCorp said this quarter set an all-timerecord for sales, earnings before interest and taxes, net incomeand earnings per share. UtiliCorp’s earnings before interest andtaxes for the third quarter were $162.9 million, up 42% from $114.6million a year earlier.

PG&E Corp.’s National Energy Group (NEG) filed anapplication with the Oregon Office of Energy to build a newelectricity generating facility adjacent to the company’s existingpower plant in Umatilla County. The 550 MW natural gas-fired plantis slated to be operational in time to help meet the NorthwestPower Planning Council’s (NPPC) forecasted deadline of 2003. Atthat time, the council expects the region will need an additional3000 MW to maintain reliability. The proposed Umatilla plant isexpected to generate enough electricity to supply 550,000 homes.The plant is expected to be built adjacent to the 474 MW Hermistonplant which NEG co-owns with PacifiCorp. to maximize efficiencies.The Umatilla plant will receive its natural gas fuel supply viaNEG’s Pacific Northwest pipeline system.

With natural gas costs expected to be higher in the next fewmonths, Naperville, IL-based Nicor Gas has announced a new CustomerPayment Support Plan, which will enable its 1.9 million customerswho fall behind in their bills to spread monthly payments intosmaller amounts through the summer. If a customer receives a billin January or February and cannot make the total payment, thecustomer contacts Nicor, which will then estimate costs in futuremonths and arrange a payment plan to spread the amount in regularincrements over warmer months. Fixed monthly payments wouldcontinue until Sept. 2001. The plan joins two other programs,including the Low Income Home Energy Assistance Programadministered by the Illinois Department of Commerce and CommunityAffairs, and Sharing, an assistance program administered by theSalvation Army and funded by Nicor. For information about theprograms, call (888) 642-6748.

The New York Mercantile Exchange announced a target date of Nov.15 for its demutualization, which will make it the first exchangein New York to convert from not-for-profit membership structure toa for-profit structure. Pending certain legal notifications byNovember 15, the Exchange, a not-for-profit membership corporationunder New York law, will be reorganized on that date as afor-profit membership corporation under Delaware law and will berenamed New York Mercantile Exchange, Inc. A new stock-holdingcompany named NYMEX Holdings, Inc., will be formed to own all ofthe economic interests and most of the voting control in thefor-profit membership corporation. Each existing NYMEX Divisionmembership will be converted into one share of common stock inNYMEX Holdings, representing equity in the overall organization,and one membership in the exchange representing trading privileges.The common stock and trading privileges will not be separable untila majority of stockholders vote to permit separate trading of thecommon stock and trading rights. The exchange is the largestphysical commodity exchange in the world. On average, $14 billionworth of transactions occur on the exchange on a daily basis, with$3.3 trillion changing hands last year.

Pennaco Energy announced that it has posted record net income of$3.6 million ($0.17 per share) for the third quarter 2000, comparedto last year’s third quarter net loss of one million dollars ($0.07per share). The coal-bed methane E&P company which holdsapproximately 400,000 net acres in the Powder River Basin ofWyoming and Montana had net gas sales of 47 Bcf or 51 MMcf/d. Thenet gas sales represent a 13% increase over the company’s secondquarter figure, and over six times its sales for the third quarterof 1999.

Bangor Gas said it has started deliveries to Bucksport EnergyLLC located at International Paper’s paper mill in Bucksport, ME.Under a 15-year contract with Hydro Quebec Energy Services, BangorGas will deliver 48 MMcf/d of gas to the new 174 MW cogen, whichwill produce power and steam for the mill. The plant is a jointventure between International Paper and Hydro Quebec. With the mainlateral to serve the plant now in place, Bangor Gas said it willfocus on developing a distribution system to serve residential andcommercial customers in Bucksport

Avista-STEAG LLC and NRG Energy Inc. have formed a partnershipto build, operate and manage a 633 MW natural gas fired merchantplant in Fort Bend County, outside of Houston. Avista-STEAG willretain 51% ownership in the Brazos Valley project, with NRG owning49%. Construction will begin in early 2001, with commercialoperation expected in January 2003. STEAG is Germany’s leadingindependent power producer. Avista is headquartered in Spokane, WAand NRG is headquartered in Minneapolis.

EnerMark Income Fund has announced a friendly takeover of CabreExploration Ltd. of Calgary under which EnerMark will make an offerof 3.25 trust units and one warrant to purchase an EnerMark trustunit until Dec. 15, 2001 at a price of $4.71 per unit per commonshare of Cabre. The offer, which has the support of both boards,does not include a value for the Vanguard shares, which are to bedistributed to Cabre shareholders before closing. The offerpresents a 33.7% premium over the closing price Nov. 3 of Cabre of$11.60, and the aggregate value of the offer is $350 million. J.Douglas Kay, Cabre’s CEO, said the deal will enhance shareholdervalue, and Cabre’s “extensive exploratory assets can be readilymonetized with third parties seeking farm-in opportunities.”

Gulf Canada Resources Ltd. has agreed to purchase all of theoutstanding common shares and associated rights of Crestar Energyfor approximately $177 million in cash and 181 million ordinaryshares of gulf. More than 90% of the Crestar shares have beentendered, and Gulf will also exercise its statutory rights topurchase the remaining shares. The deal was first announced inOctober. Dick Auchinleck, CEO of Gulf, said the acquisition willgive the company a “balanced portfolio of assets and a substantialpresence in North America’s gas markets, where our gas productionmore than doubles.” He said the move also will provide cash flow tofund the development of prospects at Surmont, the Mackenzie Delta,offshore Eastern Canada and overseas. When the merger is completed,the combined entity will produce 288,000 boe/d in 2001, beforeanticipated asset sales of up to 20,000 boe/d. Combined proved oilreserves would be 586 million barrels and gas reserves would total3.3 Tcf.

FirstEnergy Services has signed a long-term energy service andsupply agreement with National City Corp. for facilities in Ohio,Pennsylvania, Kentucky, Indiana, Illinois and Michigan. The companywill serve as National City’s energy manager, helping it securecompetitive prices for electricity, natural gas andenergy-efficiency projects for 1,300 bank branches, operationscenters and other locations. FirstEnergy Services also will provideautomated billing and other energy-related, Internet-basedcommunication services for the Cleveland, OH-based financialservices firm. National City relied on the consulting services ofThe Studebaker Group, Inc., to assist in the evaluation ofpotential energy suppliers.

Amerada Hess, based in New York City, plans to issueapproximately 17.1 million common shares of its stock, pay nearly$2.4 billion in cash and assume $1.6 billion in gross debt to buyUnited Kingdom energy corporation Lasmo. Lasmo’s board still has toapprove the acquisition, along with 90% of the company’sshareholders. Once done, the Lasmo shareholders would receive about98 British pounds and one Hess common share for every 78.9 Lasmoshares. Hess officials said the deal would boost its move intointernational exploration and production, especially adding to itsoil reserves. The combined company would raise Hess’ dailyproduction to 582,000 barrels of oil a day in 2001 from its current374,000.

Fort Worth, TX-based Quicksilver Resources reported that itsthird quarter earnings set a company best record with net incomerising 372%. Net income was $4.8 million ($0.26 per share) comparedto $1 million ($0.08 per share) during the third quarter 1999. Thecompany accredited the breakout quarter to higher prices andincreased volume production and sales of natural gas and oil. Thecompany’s net natural gas sales went from $10.4 million for 3Q 1999to $20.3 million for 3Q2000, a 96% increase. Gas production volumesalso jumped 65% between the two time periods to end up at 7 Bcf inthe third quarter of this year. Gas prices on average increasedabout 19%. Natural gas liquids (NGL) followed in tandem, growing to$957,000 with volumes growing 175% and prices by 213% when comparedto the same time period last year. Oil sales enjoyed similar leaps,growing 112% to $6.8 million over last year’s $3.2 million figure.Crude production also rose 41% higher to finish at 305 bbls. Theaverage crude oil price grew approximately 50%.

Range Resources Corp., another Fort Worth, TX-based producer,reported its third quarter net income was significantly lower thanlast year for the same time period due primarily to hedging. Thecompany posted a net income of $7.8 million for the third quarter2000, a drop from its 3Q 1999 posting of $13 million. The company’srealized price per Mcfe after hedging rose 27% to $2.91. Oil andgas sales rose from $37.5 million for 3Q 1999 to $40.6 million forthe same time period this year. However, production fell off fromlast year for the same time period. Natural gas production droppedfrom 136 MMcf/d to 114 MMcf/d. Oil production followed the slide,from 5,996 b/d to 5,278 b/d for 3Q 2000. The company attributed theslides primarily to dispositions. Natural gas liquids was the lonebright spot, rising from 971 b/d to 983 b/d. Based on the company’shedges and current futures prices, Range estimates that itsrealized price in the fourth quarter will rise by over $1.00 perMcfe, adding more than $14 million to net income and cash flow.

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