The post-Enron Corp. energy industry erosion of financial sector confidence will only be reversed by companies and the overall industry developing more standardized contracts and greater disclosure, according to speakers at a day-long Standard & Poor’s “Power and Energy Credit Conference” Wednesday in New York City. The rating agency’s speakers also said their ratings work will continue to be done on a company-by-company basis, so individual companies do not have to be tainted by the current industry torpor.
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PanCanadian, AEC Financials, Assessments on EnCana Merger
Despite a 74% drop in net income in the fourth quarter, Calgary-based PanCanadian Energy Corp. said it had the strongest annual financial results in its history because of higher natural gas prices earlier in the year, increased gas production and favorable price hedges. Due to lagging gas prices — neighbor and proposed merger partner — Alberta Energy Co. (AEC) experienced a drop in earnings during 4Q 2001, falling 83% from the fourth quarter of 2000 to C$80 million (C$0.46 per share diluted).
Appeals Court OKs Royalty Assessments on Producer Marketing Costs
In a split decision for natural gas producers, the U.S. Court of Appeals for the District of Columbia Circuit has upheld the federal government’s right to include downstream marketing costs when computing royalties owed by individual producers. But, it said producers’ firm transportation demand charges for unused capacity were not subject to the same royalty consideration.
Appeals Court OKs Royalty Assessments on Producer Marketing Costs
In what appears to be a split decision for natural gas producers, the U.S. Court of Appeals for the District of Columbia Circuit has upheld the federal government’s right to include downstream marketing costs when computing royalties owed by individual producers. But, it said producers’ firm transportation demand charges for unused capacity were not subject to the same royalty consideration.
Legislators, CPUC in Standoff Over CA’s Energy Future
End-of-the-year assessments of California’s roller-coaster ride along energy restructuring point to a lack of consensus among the state’s leaders and industry stakeholders about what the state’s future framework for electricity in particular should look like. A report over the holiday week in the Los Angeles Times reported a split between the state’s top regulator and state legislator over who should take the next steps in shaping the state’s energy markets.
AGA Sees Storage Bolstering Winter Supply
Responding to outside assessments that U.S. natural gasproduction could be 5% below the average of recent heating seasons,the American Gas Association (AGA) said it expected “ample suppliesof natural gas to be available this winter at competitive prices.