UtiliCorp United reported a 75% jump in earnings per share forthe third quarter led by strong results from its Aquila Energysubsidiary and an increased contribution from internationalbusinesses. “The energy merchant business continues to be strong,”said CEO Richard C. Green. “Aquila’s performance and the continuedunleashing of value in our international businesses resulting fromthe initial contribution of our recent electric network acquisitionin Canada and the successful initial public offering of our telecombusiness in Australia enabled us to exceed last year’s thirdquarter results.”

Amerada Hess beat earnings estimates by a substantial margin,reporting $2.86/share compared to $1.85/share in 3Q99. Streetestimates had the company earning only $2.35/share. Its operatingearnings came in at $257 million compared with $52 million lastyear. Operating earnings in the first nine months of 2000 were $683million compared with earnings of $131 million in 1999. Thecompany’s U.S. gas production, however, plummeted 18% to 282MMcf/d. realized gas prices rose 67 cents to $3.98/Mcf.

Minneapolis-based independent power producer NRG Energy, Inc.reported net income of $88.6 million or 49 cents/share for thethird quarter versus $27.6 million or 19 cents/share in 3Q99.Revenue soared 325% to $624.8 million. “Our baseload andintermediate dispatch facilities provide a foundation forconsistent earnings, while our peaking facilities enable us tobenefit from markets in which weather and local market conditionscontribute to stronger demand for electricity,” said CEO David H.Peterson. NRG’s earnings benefited from increased generationcapacity because of a number of recently acquisitions. Since lastSeptember, it has increased its net megawatt ownership interest ingenerating facilities in operation by 112% to 14,216 MW.Additionally, 206 MW in projects were under construction at the endof the quarter. NRG’s total assets at the end of the quarter werevalued at $6.1 billion compared to $2.5 billion in 3Q99. NRG ownsall or a portion of 63 generation projects and its net ownershipinterest exceeds 14,000 MW.

Reliant Energy beat Wall Street estimates by several cents pershare during the third quarter with a 37% increase in earnings to$389 million, or $1.36 per share. Strong performance from thecompany’s unregulated domestic wholesale generation operations andgrowth in its regulated electric customer base were the primaryreasons for the earnings increase. “Our strong commercialmanagement of generating assets and commercial gas and powerpositions in attractive regions of the U.S. has allowed us to breakout of the traditional role of a local energy provider,” said CEOSteve Letbetter. The wholesale energy unit reported a 642% increasein third-quarter operating income to $319 million compared to 3Q99.Gross margins increased by $372 million. Reliant attributed thegrowth primarily to the expansion of commercial assets and tradingin several regions, as well as higher energy sales and energyprices due to unique seasonal dynamics in the Western markets.Subsidiary HL&P’s operating income jumped 13% to $500 million.Reliant’s three gas distribution companies reported an operatingloss of $15 million compared to an operating loss of $5 million forthe same period of 1999.

Kerr-McGee more than doubled its earnings to a record $266million, or $2.58/share, which was up significantly from Streetestimates of $2.17/share. “We generated substantial cash flowduring the quarter and repaid more than $250 million in debt,reducing net debt as a percent of total capitalization to 50%,”said CEO said Luke R. Corbett. “In addition, continued success withthe drill bit has resulted in development approval for our100%-owned Leadon field in the North Sea. The development ofLeadon, along with developments under way at the North Sea Skenefield and the Nansen and Boomvang fields in the deepwater Gulf ofMexico, provides the base for future production growth.”Third-quarter operating profit was $461 million compared with $241million in the 1999 quarter. Exploration and production operatingprofit rose to $406 million, almost double the $211 million in theyear-ago quarter. Sharp increases in both crude oil and natural gasprices were the primary reason for the increase. Daily gas salesaveraged 527 MMcf, down 7% from the prior-year quarter, but gasprices averaged $4.13/Mcf, or about $1.49 higher than the 1999quarter.

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