Analysts

KeySpan Energy announced that its earnings are significantlyahead of analysts’ estimates for the first quarter and could be upto 7% higher for calendar year 2000. The First Call averageestimate is currently $1.87 per share for the year 2000, thecompany said. The boost has been caused by many factors Keyspansaid including: Strong growth in our gas market, resulting from anaggressive market strategy in the Company’s new Long Island market;Electric demand and gas demand hit record levels in January, givingKeySpan highest winter send-out days in both electricity and gas;and the benefit of substantial reductions in O&M expenses,amounting to $110 million. In merger-related news, KeySpan saidthat the merger with Eastern Enterprises, which was announced lastyear, is proceeding on schedule and is expected to be completed bythe Fall.

Fueled by forecasts calling for cooler temperatures throughoutmuch of the country later this week, natural gas futures probedhigher in two distinct buying surges yesterday. The first push cameshortly after Monday’s lower open, when traders bid the Januarycontract to $2.50. However, those gains were erased almost entirelyby early afternoon, intra-day profit taking. But the bulls were notfinished, and after digging in their heels at $2.47, weresuccessful in pushing prices through $2.50 late in the session. TheJanuary contract finished up 6.3 at $2.509.

Occidental Petroleum beat analysts’ third quarter earningsexpectations by a solid 10 cents/share. Higher gas and oil pricesand improved performance from its chemicals division produced netincome of $126 million ($0.35/share) for the third quarter, 232%higher than the $38 million ($0.10/share) posted in 3Q98. Earningsbefore special items were $125 million compared with only $3million in 3Q98.

Producers – and the lawyers, brokers and analysts they breakbread with – received a second helping of what was for lunch eightmonths ago at Houston’s Petroleum Club: a bullish outlook for gasprices.

AGL Resources Inc. said it expects operating earnings for itsfourth quarter of fiscal 1999 to be lower than analysts’ estimates,although the company expects a modest profit from operations forthe quarter. Current estimates have the company earning $0.17/shareduring the quarter ending Sept. 30 compared to $0.12/share lastquarter.

AGL Resources Inc. said it expects operating earnings for itsfourth quarter of fiscal 1999 to be lower than analysts’ estimates,although the company expects a modest profit from operations forthe quarter. Current estimates have the company earning $0.17/shareduring the quarter ending Sept. 30 compared to $0.12/share lastquarter.

Analysts are escalating their spot gas price forecasts but it’snot the oft-cited storage fill that’s driving them.

Analysts are escalating their spot gas price forecasts, but it’snot the oft-cited storage fill that’s driving them.

Cinergy Corp. CEO James Rogers told analysts this week the companymay exit the power supply business altogether, including nonregulatedtrading and marketing, and regulated sales, as a result of the hugelosses suffered in the power market in July (see Daily GPI Aug. 9, Aug. 11). Cinergy’s board intends to make adecision on the matter this fall. The company also plans to considerspinning off its generation business into a separate subsidiary.