ONEOK Energy Marketing & Trading on Friday signed multi-year, multi-million dollar gas supply agreement with Chicago-based Peoples Gas Light and Coke Co. Although the companies did not specify the quantity of gas to be delivered by ONEOK at the Chicago citygate, ONEOK said that based on current futures prices, gas revenues under the agreement would total $300-575 million.

“This transaction is illustrative of our strategy of growing our physical marketing business and utilizing our leased pipeline and storage assets,” said Chris Skoog, president of OEMT.

Chicago-based Peoples Energy, parent company of People Gas, also reported net income of $5.6 million, or 15 cents per share, for the third quarter on Friday. Income was down from $8 million, or 22 cents, a year earlier, and failed to meet Wall Street expectations. On average, analysts expected a per-share profit of 29 cents, according to Thomson First Call.

“Third-quarter financial results fell short of our expectations,” said Peoples Chairman Thomas M. Patrick. “While operating results from our diversified energy businesses are expected to be up 25-30% for the entire fiscal year, their strong performance will not overcome the negative effects of warmer weather and conservation on gas distribution deliveries.”

Peoples Energy cut fiscal 2004 earnings expectations to between $2.60 and $2.70 per share. The company previously expected to post earnings per share in the range of $2.70 to $2.85, and analysts had been expecting $2.77, according to Thomson First Call.

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