Conoco reported record results for the third quarter, as strongprices and margins for refined products and record refinerythroughputs produced net income of $523 million, or $0.83 perdiluted share, double that of third quarter 1999. “Earnings were atrecord levels for the third consecutive quarter, and majordiscoveries were made in Vietnam and the deep-water Gulf ofMexico,” said CEO Archie W. Dunham. “In the North Sea, we completedthe Norsk Hydro producing properties acquisition and broughtonstream the Vixen natural gas field. We also announced agroundbreaking 20-year supply contract to deliver Indonesiannatural gas to Malaysia. Great strides are being achieved inexploration. We are extremely encouraged by the Magnolia appraisalwell currently being drilled in the Gulf of Mexico. In addition, weunveiled the industry’s most powerful exploration supercomputerthat allows more cost-effective seismic data analysis. In a relatedstep, we began a massive geophysical survey over 2,000 deep-waterblocks in the Gulf of Mexico, using gravity gradiometry technologyonce used exclusively by the military,” he said. The company’s U.S.gas production was down 2% from 3Q99 levels to 826 MMcf/d. Itstotal net worldwide production was down 4% to 619 Mboe/d.

Southern Co. reported third-quarter earnings from continuingoperations of $668 million or $1.03 per share compared with $622million or 91 cents per share in the year-earlier quarter.Including one-time charges such as costs relating to SouthernEnergy’s transition to going public, the company earned $614mill1ion, or 95 cents per share, which was 3 cents/share more thananalysts expected, according to First Call/Thomson Financial. Thecompany expects to top analyst estimates for the year by about 5cents/share, earning $2.10 per share, excluding transition costsand the sale of a 20% stake in affiliate Southern Energy. Southernplans to spin off the remainder of its stake in Southern Energy inthe next six to 12 months.

In the company’s first earnings report since its $1.8 billioninitial public offering, Southern Energy Inc. announced a 59%increase in third quarter earnings to $119 million. CEO MarceFuller said she believes Southern Energy is on track to achieve anaverage annual earnings-per-share growth rate over the next fouryears in excess of 20%. The company is in the process of buying5,000 MW from Potomac Electric Power Co. It also recently completedthe $250 million purchase of Vastar Resources Inc.’s 40% interestin Southern Company Energy Marketing, the company’s energymarketing and risk management business. Southern Energy’s Americasbusiness unit, which includes the United States, Canada, SouthAmerica and the Caribbean, reported $113 million in earnings forthe third quarter, up from $34 million from the same period lastyear.

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