XTO Energy Inc., which is to become a part of ExxonMobil Corp. by the end of June (see NGI, May 3), said natural gas-weighted production in 1Q2010 was 6% higher than in the year-ago period, climbing to 2.90 Bcfe/d from 2.73 Bcf/d. Natural gas output averaged 2.40 Bcf/d compared with 2.23 Bcf/d in 1Q2009. Total revenues were $2 billion in 1Q2010, down 7% from $2.16 billion the prior year. Earnings in 1Q2010 also were down at $330 million (56 cents/share) from $486 million (84 cents). Operating income was $656 million, or 26% below 1Q2009’s $881 million. Operating cash flow fell 16% to $1.25 billion from $1.49 billion.

Enterprise Products Operating LLC has signed the largest natural gas liquids (NGL) fractionation deal of its kind, nabbing a six-year agreement to provide Anadarko Energy Services Co. with services at the Mont Belvieu, TX, complex. Under terms of the contract, the Enterprise Products Partners LP subsidiary will make up to 62,000 b/d of firm NGL fractionation capacity available at the partnership’s complex beginning Sept. 1. The contract enables Enterprise to add long-term NGL supply of more than 100,000 b/d this year.

The Federal Energy Regulatory Commission has issued a favorable environmental assessment for Cadeville Gas Storage LLC‘s proposal to build a high-deliverability natural gas storage facility in northern Louisiana [CP10-16]. The facility, which would be located in Ouachita Parish about 10 miles southwest of Monroe, LA, is being designed to accommodate peak withdrawals and injections of 420 MMcf/d, and will have 16.5 Bcf of working gas capacity. The storage facility will have the ability to interconnect to various pipelines in north Louisiana providing access to the Perryville Hub, according to Cadeville Gas Storage, which is owned by Cardinal Gas Storage Partners. Assuming it receives regulatory approval, commercial storage services are scheduled to begin in early 2012. Cadeville proposes to drill eight horizontal wells, install small pipeline facilities and a compressor station with 23,765 hp. Cardinal Gas is a joint venture of Martin Resource Management Corp. and Energy Capital Partners LP.

Nicor Inc‘s gas distribution and other energy-related businesses saw higher operating income in the first quarter, helping the Naperville, IL-based company to net income of $60.5 million ($1.33/share) in 1Q2010, an increase of 38% compared with $43.8 million (96 cents) in 1Q2009. Gas distribution operating income increased $39.4 million in 1Q2010 compared to the prior year period, reflecting lower operating and maintenance expenses, higher gas distribution margins and higher depreciation expense. Nicor’s shipping unit reported a $7.1 million earnings decrease in 1Q2010 compared with 1Q2009 results, due primarily to lower average rates. Nicor reiterated its previously announced 2010 earnings guidance of $3.10-3.30.

The Environmental Protection Agency (EPA) has proposed streamlining the process by which manufacturers may demonstrate that aftermarket conversion systems that allow gasoline or diesel vehicles to operate on alternative fuels, including natural gas or electricity, comply with vehicle and engine emissions requirements. The new options would reduce some economic and procedural impediments to alternative fuel conversions. The proposed rule would cover conversions of light-duty vehicles and heavy-duty highway vehicles and engines, and would apply to all clean alternative fuels, EPA said. Under the proposed approach, compliance requirements would vary based on the age of the vehicle or engine being converted. EPA will accept public comments on the proposal until July 23.

Seal Beach, CA-based Clean Energy Fuels Corp. said it has signed a five-year contract with SuperShuttle International to provide it with compressed natural gas (CNG) for its vehicles at major airports throughout the United States. SuperShuttle has been operating with natural gas-powered shared-ride vehicles since 1995. Under the new agreement, SuperShuttle vans will fuel at Clean Energy’s existing or future stations located at airports including Dallas/Fort Worth, Denver, New York City, Phoenix, and six airports in California (Los Angeles, San Francisco, San Diego, Burbank, Ontario and Orange County). For San Francisco International Airport (SFO), SuperShuttle has ordered 40 CNG-powered vans from Clean Energy’s subsidiary, Dallas-based BAF Technologies Inc., which Clean Energy acquired last year.

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