EOG reported net income of $43.2 million, or 28 cents/share for Q4 1997, up from $35.1 million, or 22 cents/share, for Q4 1996. Net operating revenues totaled $238 million, up from $204.3 million in Q4 1996. Discretionary cash flow totaled $173.6 million, up from $153.2 million for Q4 1996.
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NGI Staff Reports
Articles from NGI Staff Reports
While the deep-water Gulf of Mexico continues to be a hot spot for E&P spending in the U.S., analysts are expecting a sharp slowdown in spending growth at most other domestic locations next year, a significant contrast to the record spending growth in the U.S. over the past two years. According to Salomon Smith Barney’s 16th annual survey of worldwide E&P expenditures, there will be a general shift toward greater spending overseas in 1998.
Cogeneration has hit the single family home market with a new system that produces electricity every time the heater kicks in. Now available in New England and eastern Pennsylvania, the 5 kW units can be powered by fuel oil, propane or natural gas and in many cases wipe out electric bills altogether.
Hoping to continue 1997’s over-book-value bidding on fossil-fuel plants, Pacific Gas and Electric will auction four more natural gas-fired power plants and one geothermal power plant later this year. The plants collectively represent $850 million in book value, 4,712 MW of capacity and a total natural gas load (on the four gas-fired plants) of 273 MMcf/d.
The Midwest ISO, now consisting of nine companies covering eight states, 32,000 miles of transmission and 63,000 MW of electric power, has made its initial filing at the Federal Energy Regulatory Commission, just a month after some onlookers thought the plan was dead. In December major participants backed away from a five-year commitment to consider joining an alternative plan (see NGI, 12-15).
The Michigan Public Service Commission (PSC) completed final action on rehearing orders required to introduce competition to the state’s electric utilities. By a 2-1 vote, the commission adopted a phase-in schedule to allow 2 «% of customers of Consumers Energy and Detroit Edison to select a supplier as early as March 31 if federal regulatory approvals are obtained.
In an effort to get lean and mean for the coming competitive marketplace for electricity sales, PacifiCorp said it will cut its U.S. work force by 7% this year in its domestic electric operations and general administrative groups, trimming about 600 jobs through early retirement and special severance.
Phelps Dodge Corp. has accused El Paso Natural Gas of refusing to provide new transportation service to its refining facility under the company’s existing agreement because the terms of the pipeline’s comprehensive rate settlement would prevent the Texas-based pipeline from making any money on the deal.
Apache Corp. signed an exchange agreement with Altura Energy Ltd., a partnership of Amoco and Shell Oil, that allows it to avoid large expenditures needed to get more oil out of the properties it is giving up. Apache will receive Altura’s interests in the New Mexico Federal Unit (NMFU) and the Drinkard Unit of Lea County, NM, in exchange for Apache’s interests in West Texas’ Cogdell Canyon Reef Unit.
Guy P. Wyser-Pratte, president of Wyser-Pratte & Co., Inc. and a Pennzoil shareholder who beneficially owns 454,100 shares, announced the SEC completed a review of his proxy statement for an upcoming annual meeting of Pennzoil shareholders. Wyser-Pratte’s by-law proposals if adopted would give shareholders power to review and potentially block board decisions to reject future offers for the company’s shares. The proposed changes in company by-laws are in response to the Pennzoil board’s rejection last year of a purchase offer by Union Pacific Resources.