Analysts

Pacific Gas and Electric Co. CEO Gordon Smith told analysts last Thursday that the PG&E Corp. utility subsidiary is unlikely to reach some type of settlement agreement with regulators similar to the one regulators reached with Southern California Edison. PG&E’s electric rates are a penny/kWh lower and its debt is much higher than Edison’s was at the time of the settlement, he said.

Pacific Gas and Electric Co. CEO Gordon Smith told analysts Thursday that the PG&E Corp. utility subsidiary is unlikely to reach some type of settlement agreement with regulators similar to the one regulators reached with Southern California Edison. PG&E’s electric rates are a penny/kWh lower and its debt is much higher than Edison’s was at the time of the settlement, he said.

Raymond James analysts are lowering their 2002 rig count forecast but holding steady their forecast for 2003. Despite the recent sharp increases in oil and gas prices, producers have not responded with increases in drilling. The apparent disconnect seems to be related to their desire to use increased cash flows to strengthen balance sheets rather than re-invest in the drill bit, said Raymond James’ Marshall Adkins.

Analysts at Raymond James & Associates took a double-blade axe to their natural gas price forecast for the rest of the year, chopping an entire dollar off the prices they are expecting to see in the third and fourth quarters. They based the change on the likelihood that gas prices will crash when the full level of storage is reached well before the end of the injection season.

Analysts at Raymond James & Associates took a double-blade axe to their natural gas price forecast for the rest of the year, chopping an entire dollar off the prices they are expecting to see in the third and fourth quarters. They based the change on the likelihood that gas prices will crash when the full level of storage is reached well before the end of the injection season.

With almost 40 of the largest public producers reporting year-end 2001 reserve data — representing two-thirds of total domestic gas production — Salomon Smith Barney (SSB) determined in a report issued last week that only 101% (120% excluding revisions) of production was replaced by new reserves in 2001. By comparison, this same group replaced 131% of production (101% excluding revisions) in 2000. However, proved undeveloped natural gas reserves (PUDs) rose, which failed to add to the reserve base.

PG&E Corp. CEO Robert Glynn told financial analysts Wednesday that he sees “much more certainty” for his company now than there was a year earlier. He envisions 2002 as a year in which PG&E’s major utility subsidiary clears bankruptcy, some assets are sold and the regulatory climate stabilizes even if market volatility does not.

U.S. producers are expected to continue to view Canadian exploration and production (E&P) companies as enviable takeover targets in 2002, according to analysts.

U.S. producers are expected to continue to view Canadian exploration and production (E&P) companies as enviable takeover targets in 2002, according to analysts.