Benefiting

Aside from those that have leased lands for development, Pennsylvania school districts do not seem to be benefiting much financially from Marcellus Shale activity, according to a recent report from Pennsylvania State University.

There are more than oil/gas roughnecks benefiting from the growing boom in the Marcellus shale play; Pennsylvania banks are positioning themselves to share in the rewards, according to a report published in late June by an Arlington, VA-based investment bank, FBR Capital Markets.

Being closer to a major market area means cheaper transport, right? Marcellus Shale producers are benefiting from that self-evident axiom, but there is some question about their relative lack of gathering/processing infrastructure compared to such areas as the Gulf Coast and Midcontinent hindering them from realizing maximum value for their gas.

Benefiting from a rise in oil prices and the ramp-up of facilities damaged by hurricanes last year, Chevron Corp. on Friday surpassed Wall Street estimates with a 40% jump in third-quarter profit compared with the same period a year ago. Leading independent Chesapeake Energy Corp., meanwhile, managed to outsmart the natural gas market by successfully hedging against falling prices, while also boosting its U.S.-based gas production.

A key piece of tax legislation benefiting independent natural gas and oil producers moved through the House Ways and Means Committee Wednesday night (on a 24-17 vote) on its way to a late July rendezvous with three other parts of the administration’s energy plan on the House floor.

Fourth quarter profits for Conoco were up 77%, benefiting fromits strongest oil and gas prices in almost a decade. TheHouston-based energy company said that before special items, netincome was $574 million, or 91 cents per diluted share, whichtopped First Call/Thomson Financial’s consensus of 85 cents ashare. In 1999, quarterly earnings were $324 million, or 51 centsper share.

Benefiting from the hot summer and increased air conditioningloads in the Southwest, Reliant Energy announced it anticipates itsthird quarter earnings to be “substantially higher” than during thesame period last year. The company expects to exceed FirstCall/Thomson Financial’s projections of $1.07 per share by 25 to30%. Reliant’s adjusted earnings for the third quarter of 1999 were$283 million, or 99 cents a share.