Western Gas Resources reported third quarter net income of $14.8 million, or $0.36 per diluted share compared to $14.5 million or $0.36 per share in 3Q2000. For the third quarter of 2001, EBITDA was $46.7 million, cash flow from operations was $17.7 million and revenues were $670.9 million. For the first nine months of the year, the company had $84.8 million in net income compared to $38 million during the same period last year. Earnings from midstream operations were down 25% to $37.6 million for the third quarter. Net gas production increased 27% to 98 MMcf/d in the third quarter. Company-wide gas sales volumes averaged 2.1 Bcf/d, an increase of 8%, which was a result of an increase in the sale of residue gas purchased from third parties and increased sales of coal-bed methane from the Powder River Basin. Average sales prices decreased 32% to $2.77/Mcf. Natural gas liquids sales volumes fell 26% to 2,335 MGal/d. In the third quarter, the company’s equity-hedging positions increased operating income by $10.6 million as compared to a reduction in operating income of $10.6 million in the third quarter of 2000. For the fourth quarter, the company has hedged 82,000 MMBtu/d, or 68% of its estimated equity gas volumes, at a weighted average Nymex-equivalent price of $4.32/MMBtu. For 2002, Western has hedged 80,000 MMBtu/d, or 57% of its projected 2002 equity gas volumes, with collar structures providing for an average minimum price of $3.81/MMBtu and an average maximum price of $5.87/MMBtu.

El Paso Corp. finalized its previously estimated third quarter 2001 full-cost ceiling test charge for its oil and gas assets at $91 million after-tax. Previously, the ceiling test charge was estimated at $100 million. The revised charge relates solely to El Paso’s international oil and gas assets. There is no ceiling test charge for the company’s domestic oil and gas activities. This revised charge has no impact on El Paso’s previously reported adjusted earnings per diluted share of $0.78, which excluded the impact of merger-related and other non-recurring charges, including the revised ceiling test charge. Diluted earnings per share for the quarter, including the effects of these non-recurring charges, were $0.41 compared with $0.55 for the same period last year.

FPL Energy Services, an affiliate of FPL Group Inc., said it has decided to expand its natural gas service to businesses throughout Florida as a result of further deregulation of the natural gas retail market in the state. FPL Energy Services said it will be selling service in the natural gas markets where Peoples Gas, City Gas, Central Florida Gas and Florida Public Utilities now serve. Customers will include small, medium, and large-size businesses. The company says businesses can now look for the provider offering the best possible value. For example, FPL Energy Services offers flexible pricing options that include indexed and fixed pricing.

Regent Energy Corp. announced that it has signed a letter of intent to acquire the Hauspaugh assets of B,C & D Operating Co., a New Mexico oil and natural gas company. Regent said it will pay $6 million for the properties in a combination of cash and company stock. Donnie Hill, president of B,C & D, will join Regent at the closing of the acquisition to oversee the operations and expansion of the B,C & D properties as well Horseshoe Gallop, an oil and gas field operated by Regent with significant proven undeveloped reserves. The B,C & D properties are currently producing 370 b/d of oil and 2,500 Mcf/d of gas with a current expectation of 5,000 Mcf/d by year-end. The closing of the acquisition is subject to a definitive purchase and sale agreement, financing and board approval. Regent said it expects to close the deal on or before Dec. 31.

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