Benefits

High natural gas prices and narrowed spark spreads in some regions hurt the second quarter performance of gas-fired generators, but should benefit the results of companies with exploration and production (E&P) components, according to a report by CreditSights analysts.

El Paso Corp. could be forced to pay out more than $75 million in severance benefits if disgruntled investors, Selim K. Zilkha and Oscar S. Wyatt, succeed in replacing the company’s existing board of directors with their own slate of candidates at the upcoming stockholders meeting in June.

El Paso Corp. could be forced to pay out more than $75 million in severance benefits if disgruntled investors, Selim K. Zilkha and Oscar S. Wyatt, succeed in replacing the company’s existing board of directors with their own slate of candidates at the upcoming stockholders meeting in June.

California’s attorney general announced Friday the state has made final an amended version of its previously announced $417 million settlement with Tulsa-based Williams Companies regarding a renegotiated 10-year power contract that is reduced by $1.4 billion in terms of the state’s obligations.

Reaping the benefits of its C$2.3 billion purchase of Rio Alto Exploration Ltd. in May, Canadian Natural Resources, Canada’s second largest producer, reported a 54% increase in natural gas production to 1.43 Bcf/d and a 44% increase in earnings in the third quarter to C$117 million or C86 cents/share.

Reaping the benefits of its C$2.3 billion purchase of Rio Alto Exploration Ltd. in May (see Daily GPI, May 14), Canadian Natural Resources, Canada’s second largest producer, reported a 54% increase in natural gas production to 1.43 Bcf/d and a 44% increase in earnings in the third quarter to C$117 million or C86 cents/share.

A fundamental and technical analysis of energy stocks found that the current up-cycle is likely to last longer and go higher than previous up-cycles, according to Raymond James, which reported the analysis in its latest energy industry brief. Not only will the energy upturn benefit from higher, supply-driven gas prices, but it will also benefit from market consolidation and stronger balance sheets, said analysts.

Although the state appears to have all the elements in place to successfully open its electricity markets to competition, the chairman of the Mississippi Public Service Commission (PSC) continues to harbor serious doubts as to how such a move will accrue to the benefit of the state’s retail customers.

Volumes and transactions have soared on IntercontinentalExchange (ICE), as Enron’s financial troubles have mounted causing credit concerns for counterparties on its online trading system, EnronOnline. ICE reported record volumes in the second week of November.