Apache Corp.’s third quarter results surpassed analysts’ profittarget by 11 cents mainly because of increases in gas and oilprices. Apache’s U.S. gas production grew 15% to 572 MMcf/d.. Thecompany’s earnings were $201.3 million, or $1.61 per share, morethan double the year-earlier profit of $67.8 million, or 59 centsper share. Revenues rose 83% to $624.6 million. Apache’s averagerealized price for oil was up 42% to $29.11/bbl and its U.S.natural gas prices were up 64% to $4.22/Mcf. During the quarter,the company completed acquisitions of producing properties in SouthTexas and the Permian Basin from Collins and Ware and in the Gulfof Mexico from Occidental Petroleum. On Oct. 9, Apache said itplanned to buy the Canadian assets of New Zealand’s FletcherChallenge Energy in a joint bid with Royal Dutch/Shell Group, whichplans to acquire the rest of the company. Regulators have blockedthe deal, but Shell and Apache hope to win approval for an amendedbid. Apache said the Fletcher deal would bring its oil and gasproperty acquisitions to about $1.5 billion this year.

Devon Energy reported the highest quarterly revenues, netearnings and earnings per share in the company’s history afterseveral acquisitions, including the most recent pooling ofinterests transaction with Santa Fe Snyder. It posted record thirdquarter oil and gas production, including a 37% increase in U.S.gas production to 972 MMcf/d. Its net earnings were $164.9 millionfor 3Q2000, or $1.22 per diluted common share). Excluding the $57.2million of one-time costs attributable to the merger with Santa FeSnyder, third quarter earnings were $200.2 million, or $1.49 perdiluted common share, which compares to 3Q99 net earnings of $50.9million, or 48 cents/share.

Phillips Petroleum’s third-quarter net operating income doubledfrom year-ago levels, but refinery problems prevented the companyfrom meeting Wall Street targets. Phillips earned $505 million, or$1.96 a share, compared to $221 million, or 87 cents a share, in3Q99. “Leading the way were strong results from our E&Psegment,” CEO Jim Mulva said. “Production from Alaska and strongeryear-over-year operating performances in Norway, China and Nigeria— along with higher prices for crude oil and natural gas —contributed to a record quarter for net operating income.” In July,Phillips and Chevron combined their chemical businesses. Phillipsalso closed on its purchase of Atlantic Richfield’s Alaskanbusinesses, for which it paid $700 million and assumed $265 millionof debt. Gas gathering, processing and marketing earnings declinedas did refining, marketing and transportation earnings.

Even though earnings for Naperville, IL-based Nicor Inc. were up36% for the third quarter, the charge for mercury-related cleanupspushed its overall results into the red. Excluding the charge, thecompany posted net income of $27 million, or 59 cents a share,compared with $19.8 million, or 42 cents for third quarter 1999.First Call/Thomson Financial had expected Nicor to earn 51 centsper share. In its first accounting of the costs for inspecting andrepairing mercury contamination from spills when old gas regulatorswere removed from some residences, Nicor said it took a charge of$148 million, or $89.7 million after taxes. The costs were recordedas third quarter operating expenses in the gas distributionbusiness, resulting in a net loss of $62.7 million, or $1.37 percommon share.

Independent power company Calpine Corp. of San Jose, CA postedits 17th consecutive record quarter since going public in 1996, andthe board of directors also authorized a two-for-one split of itscommon stock. Shares resulting from the split are expected to bedistributed to shareholders of record as of Nov. 6 after marketclose on Nov. 14. Net income before extraordinary charge was $147.1million, a 243% increase over net income of $42.9 million for thirdquarter 1999. Diluted earnings per share rose 159%, to 96 cents pershare for the third quarter, up from 37 cents per share for thesame period in 1999. Revenue for the quarter also increased 168%,to $678.9 million for the quarter, up from $253 million a year ago.”Calpine has turned in another record quarter of earnings,” saidCEO Peter Cartwright. “We are anticipating a strong fourth quarter,and our prospects for 2001 and beyond continue to be excellent.” Heattributed Calpine’s success to the strong performance of itsoperating facilities, “strategic acquisition in high growth energysectors and the execution of an aggressive development program.”

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