Tripped up by its latest bankrupt unit in the merchant energy sector, San Francisco-based PG&E Corp. announced Wednesday it will ask the federal Securities and Exchange Commission for an extension of its second quarter report while financial statements are still being finalized. PG&E also said it would release is second quarter results next week (Aug. 19) with a conference call the financial community, with or without the unit’s results, which are no longer consolidated with the parent company. PG&E said both the holding company and its other Chapter 11-bound unit, the Pacific Gas and Electric Co. utility, will file for the SEC extension. They seek added time to let PG&E National Energy Group, which filed for Chapter 11 bankruptcy July 8, complete the preparation of its second quarter financial statements. “NEG is currently reviewing its methods for netting certain revenues and expenses, primarily related to hedging activities,” PG&E said in its announcement. “The outcome of this review is not expected to materially affect PG&E Corp.’s operating income, net income, balance sheet or cash flow.” PG&E NEG concurrently filed a proposed reorganization plan last month as part of its Chapter 11 filing. When implemented, the plan would eliminate PG&E Corp.’s equity in the merchant unit. “As the result of the Chapter 11 filing and the resignation of PG&E Corp. representatives from NEG’s board of directors, PG&E Corp. no longer retains significant influence over the evolving operations of NEG, including SEC filings,” the parent company said.

Cheniere Energy reported a much smaller loss for 2Q2003 when compared to the similar time frame a year earlier. The LNG developer and production company posted a net loss of $1.6 million, or $0.11 per share, for the second quarter, compared with a net loss of $2.4 million, or $0.18 per share, a year earlier. The company attributed a majority of its net losses to development expenses for its LNG receiving terminal projects, which were $1.1 million for the quarter, compared with $1 million for the comparable quarter of 2002. During the quarter, Cheniere formed Corpus Christi LNG LP to develop an LNG receiving terminal near Corpus Christi, TX (see Daily GPI, May 16). In addition, it awarded the Front End Engineering Design (“FEED”) contract to Black & Veatch Pritchard Inc. to develop its sites at both Corpus Christi and Sabine Pass, LA. Cheniere said it expects to make its filings with the Federal Energy Regulatory Commission for both sites by January 2004. Its production unit, Gryphon Exploration Co., drilled four wells during the second quarter of 2003 in the Gulf of Mexico, bringing its total wells drilled from inception in October 2000 through June 30, 2003, to 23 wells, of which 12 have been successful. The company said it expects to drill 14 exploratory wells and three to four development wells in 2003. Gryphon’s net production in June 2003 averaged 27 MMcfe/d.

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