1998

Natural gas and power companies reported their “worst quarterly performance…since early 1998,” off 8% overall in the second quarter, versus a 5% gain in the Standard & Poors 500, according to a review by Credit Suisse First Boston Corp. (CSFB). Most problematic for the quarter, said analysts, were “unpredictable” political and regulatory risks, which, combined with lower gas prices, had a negative impact.

Natural gas and power companies reported their “worst quarterly performance…since early 1998,” off 8% overall in the second quarter, versus a 5% gain in the Standard & Poors 500, according to a review by Credit Suisse First Boston Corp. (CSFB). Most problematic for the quarter, said analysts, were “unpredictable” political and regulatory risks, which, combined with lower gas prices, had a negative impact.

In complying with its 1998 Pennsylvania restructuring settlement, GPU Energy has issued a request for proposals (RFP) from electricity suppliers interested in providing competitive default service (CDS) to customers in its Metropolitan Edison Co. and Pennsylvania Electric Co. service territories.

In complying with its 1998 Pennsylvania restructuringsettlement, GPU Energy has issued a request for proposals (RFP)from electricity suppliers interested in providing competitivedefault service (CDS) to customers in its Metropolitan Edison Co.and Pennsylvania Electric Co. service territories.

The Pennsylvania Public Utility Commission has approved atentative settlement agreement with Equitable Gas Co. following anexplosion in September 1998 that killed one person. The explosionoccurred after an Equitable employee failed to accurately mark agas line to a home for repair by Duquesne Light Co. Duquesne Lightthen damaged the line, which caused the explosion in McKeesport,PA.

Cross Timbers Oil Co. of Fort Worth, TX, proved oil and gasreserves at year-end 1999 were estimated to be a record 2.02 Tcfe,up 23% compared with 1.64 Tcfe at year-end 1998. Cross Timbersadded 852 Bcfe during 1999 at a cost of 70 cents/Mcfe. Afterdeducting reserve sales of 325 Bcfe, the company replaced 527 Bcfeor 367% of 1999 production. The company’s development program,including the effect of revisions, replaced 341 Bcfe or 237% ofproduction at a cost of 28 cents/Mcfe.

In the wake of spiraling heating oil prices, Commissioner CurtHebert Jr. last week challenged his FERC colleagues to follow inthe Clinton administration’s footsteps to help reduce theNortheast’s dependence on the higher-priced fuel. ATranscontinental Gas Pipe Line official made a similar pitch toremove regulatory roadblocks to new natural gas pipelineconstruction last week at a Senate hearing.

Sempra Energy reported increased 1999 earnings of $394 million,or $1.66 per diluted share, up 34% from 1998 but the company islooking to further accelerate earnings growth and enhance itscompetitive position. It announced a dividend reduction to $0.25per share from its previous level of $0.39 per share and said itplans to hold a Dutch auction in which it will purchase up to 36million shares, or 15% of its outstanding common stock, at asingle, per-share price within a price range of $17.50 to $20. Theprice is a premium to its closing price on Jan. 25.

Deep-water gas production reached 560 MMcf/d in 1998 from only381 MMcf/d the year prior, a 47% increase, according to datareleased yesterday by the Mineral Management Service (MMS). Another311.5 MMcf/d of deep-water gas production is expected to come online this year.