Advisors

As reports and rumors continue to swirl surrounding news of Amaranth Advisors LLC’s significant losses last week, calls for better regulation continue to come in while trading exchanges attempt to assure the public that they were not adversely impacted. The Greenwich, CT-based hedge fund revealed last week that bad bets in natural gas futures have cost the company about 65% of its $9.5 billion asset value (see Daily GPI, Sept. 22; Sept. 25).

Just days after hedge fund Amaranth Advisors LLC warned investors of significant losses due to ill-advised positions in the natural gas futures arena, the ramifications of those losses on the market — now reported to be as high as $5 billion — are slowly coming into better view. In addition, one prominent broker said that without hedge fund regulation the market will “definitely see more of these blowouts” down the road.

Cheniere Energy Inc. said Tuesday it has hired HSBC Securities (USA) Inc. and Petrie Parkman & Co. to assist the company in arranging project funding for the liquefied natural gas (LNG) regasification facilities that it plans to build in Corpus Christi, TX, and Sabine Pass, LA.

Fitch, the investment ratings and analysis firm, has joined the ranks of investment advisors with lowered expectations for the upstream natural gas and oil business, predicting stagnant prices through 2002 and into 2003.

Fitch, the investment ratings and analysis firm, has joined the ranks of investment advisors with lowered expectations for the upstream natural gas and oil business, predicting stagnant prices through 2002 and into 2003.

Houston’s Torch Energy Advisors Inc. announced Monday that itformed a wholly owned subsidiary, Torch Energy TM Inc. (TETM).Natural gas marketing, along with refined products, derivativesmarketing and specialty product transactions will now be handled byTETM. Torch and its subsidiaries provide extensive outsourcingservices, including financial and accounting services, oil and gasoperations, hydrocarbon marketing and property acquisitions anddivestitures. Contact Blake Beyer at (713) 756-1881 forinformation.

Torch Energy Advisors Inc. and Advantage Energy Services Ltd.formed EnerStar Services to provide oil and gas operations andtechnical outsourcing services in North America. Bill Ploquet,former president of Advantage Energy Resources, has been named CEOof EnerStar.

Arthur L. Smith resigned as chairman and CEO of Torch EnergyAdvisors Inc. effective immediately. Smith joined the Houston-basedcompany June 1, 1998 from John S. Herold Inc. Torch PresidentKenneth E. White Jr. said the board of employee-owned Torch andSmith “concluded that their operational and strategic differenceswould best be resolved by going in separate directions.” Torchintends to focus on providing outsourcing services and capital tothe upstream oil and gas industry. Smith plans to focus his effortson personal energy investments in North America, the company said.Torch founder J.P. Bryan became senior managing director.