Because

There has been a huge increase in exploration and production”overspending” in the U.S. and Canada this year because of enormousgas price increases, and that probably will continue into 2001,said Salomon Smith Barney (SSB) E&P analysts in their 19thannual worldwide E&P spending survey.

Cincinnati-based Cinergy Corp. said that next year’s profitsmight exceed expectations because of its growth from the purchaseof power plants. Cinergy now expects earnings per share for 2000 tohit the consensus estimates of $2.55, however next year, thecompany expects to grow 8% through merchant purchases.

There has been a huge increase in exploration and production”overspending” in the U.S. and Canada this year because of enormousgas price increases, and that probably will continue into 2001,said Salomon Smith Barney (SSB) E&P analysts in their 19thannual worldwide E&P spending survey.

Because its initial open season period of Oct. 5 through Dec. 5included the Thanksgiving holidays, Dominion is extending thedeadline to Dec. 19 for its previously announced GreenbrierPipeline project in order to continue to gauge customer interest.

Political forces and physical problems are at the root of theconstrained California energy market, and because of it, otherstates have slowed their pace toward deregulation and may evendecide to forego it for a while, according to an energy expert whohas helped guide companies through regulatory hearings.

Now that most of the production data for the third quarter isin, analysts generally are saying they “told you so” because U.S.gas production is barely making desperately needed gains.Production is, however, growing slightly more than expected, andsome observers see huge gains to be made next year.

Now that most of the production data for the third quarter isin, analysts generally are saying they “told you so” because U.S.gas production is barely making desperately needed gains.Production is, however, growing slightly more than expected andsome observers see huge production gains to be made next year.

Apache Corp.’s third quarter results surpassed analysts’ profittarget by 11 cents mainly because of increases in gas and oilprices. Apache’s U.S. gas production grew 15% to 572 MMcf/d.. Thecompany’s earnings were $201.3 million, or $1.61 per share, morethan double the year-earlier profit of $67.8 million, or 59 centsper share. Revenues rose 83% to $624.6 million. Apache’s averagerealized price for oil was up 42% to $29.11/bbl and its U.S.natural gas prices were up 64% to $4.22/Mcf. During the quarter,the company completed acquisitions of producing properties in SouthTexas and the Permian Basin from Collins and Ware and in the Gulfof Mexico from Occidental Petroleum. On Oct. 9, Apache said itplanned to buy the Canadian assets of New Zealand’s FletcherChallenge Energy in a joint bid with Royal Dutch/Shell Group, whichplans to acquire the rest of the company. Regulators have blockedthe deal, but Shell and Apache hope to win approval for an amendedbid. Apache said the Fletcher deal would bring its oil and gasproperty acquisitions to about $1.5 billion this year.

The “desperation” by utilities to consolidate, mutate or get outof the business altogether is a good thing, said utilities analystDaniel Ford of ABN AMRO, because this fear is where most of thestock values are now being created. Ford, a keynote speaker at lastweek’s PowerMart 2000 in Houston, called investors a “ficklebunch,” but added they are sticking with utility stocks.