1Q99

While reporting increased earnings overall for both its utilityand unregulated businesses, PG&E Corp.’s first quarter resultsreleased yesterday (May 17) continue to show red ink for its Texasnatural gas operations, trading and energy services businesses.Results were net earnings of 42 cents-per-share, or 37 cents fullydiluted, compared to 36 cents-per-share for the first quarter of1998. Overall, the utility contributed all but three cents to theearnings, compared to 1998 first quarter when it provided 100percent of the earnings.

Chevron announced last Thursday it lost 35% of its profitscompared to the same period in 1998. The company reported a netincome of $329 million or $0.50/diluted share versus $507 millionor $0.77/diluted share in 1998’s first quarter. The oil and gascompany sold oil at an average of under $10/barrel (a 20% drop form1Q98 prices) and gas at an average of $1.63/Mcf (a 22% drop from 1Q98).

Chevron announced Thursday it lost 35% of its profits comparedto the same period in 1998. The company reported a net income of$329 million or $0.50/diluted share versus $507 million or$0.77/diluted share in 1998’s first quarter. The oil and gascompany sold oil at an average of under $10/barrel (a 20% drop form1Q98 prices) and gas at an average of $1.63/Mcf (a 22% drop from 1Q98).

With storage levels already above 3 Tcf, few observers areexpecting the industry to have any trouble meeting gas demand earlythis winter. But the first quarter of next year, could provide amarket test not seen in the past two winters, several analystswarned last week. In its October Short-Term Energy Outlook, theEnergy Information Administration (EIA) seems to agree.