Best

The folks over at CMS Energy, Reliant Energy and Williams EnergyTrading apparently are the best around at smiling and saying “thankyou.” They came out on top of a new customer satisfaction rankingby Mastio & Co. that evaluates the largest gas marketingcompanies based on the results of 1,200 interviews with industrialcompanies, LDCs, power producers and other marketers.

PanCanadian Petroleum Ltd. announced “its most successful yearever” in 2000, with net income of $1.039 billion, or $4.09 pershare, and cash flow of $2.47 billion, or $9.78 per share. Thenumbers are substantially above 1999 net income of $350 million andcash flow of $1.11 billion (all Canadian dollars).

As the battle over how best to solve California’s electricitywoes bounces around the regulatory and political halls inCalifornia and Washington, DC, an immovable stumbling block thatcan’t be fixed by new legislation or regulatory decisions is anoverworked electricity highway called “Path 15.”

Fort Worth, TX-based Quicksilver Resources reported that itsthird quarter earnings set a company best record with net incomerising 372%. Net income was $4.8 million ($0.26 per share) comparedto $1 million ($0.08 per share) during the third quarter 1999. Thecompany accredited the breakout quarter to higher prices andincreased volume production and sales of natural gas and oil. Thecompany’s net natural gas sales went from $10.4 million for 3Q 1999to $20.3 million for 3Q2000, a 96% increase. Gas production volumesalso jumped 65% between the two time periods to end up at 7 Bcf inthe third quarter of this year. Gas prices on average increasedabout 19%. Natural gas liquids (NGL) followed in tandem, growing to$957,000 with volumes growing 175% and prices by 213% when comparedto the same time period last year. Oil sales enjoyed similar leaps,growing 112% to $6.8 million over last year’s $3.2 million figure.Crude production also rose 41% higher to finish at 305 bbls. Theaverage crude oil price grew approximately 50%.

Saying that the merger was in the best interest of the public, theOregon Public Utility Commission yesterday approved Sierra PacificResources’ application to acquire Portland General Electric(PGE). Sierra Pacific last year announced it would acquire PGE, awholly owned subsidiary of Enron Corp. for $2.1 billion, excludingdebt (see Daily GPI, Nov. 9, 1999).

While Mondays have been a bear trader’s best friend, Wednesdays(last week’s Wednesday excepted) have given bulls a reason to smilelately and yesterday was no exception as prices moved higher in twodistinct buying binges.

Occidental Petroleum reported second quarter net income of $564million ($1.53 per share), the best quarter in the company’shistory. The results included an after-tax gain of $300 millionrelated to the previously announced sale of its 29.2% interest inCanadian Occidental Petroleum and an after-tax charge of $80million for the decision to exit several of Occidental’s chemicalintermediate businesses. The 2000 second quarter net incomecompares to $9 million ($.02 per share) of net income reported forthe second quarter of 1999. The company’s second quarter U.S.natural gas production was up 7% to 715 MMcf/d.

Cash prices gave their best efforts Tuesday at imitating theprevious day’s screen rise of slightly over 35 cents, and quite afew points came close. But when the initially firmer July futurescontract made an abrupt about-face at mid-morning Tuesday andheaded south to eventually wind up the day more than a dime lower,cash numbers dutifully followed the screen’s lead once again inlate trading.

Merrill Lynch has been hired to serve as Avista Labs’ investmentbank and strategic adviser to evaluate the best ways to maximizethe shareholder value of its fuel cell technology. Avista Corp. ofSpokane, WA made the announcement yesterday, and said that MerrillLynch will “consider all possible options, including financialrestructuring and an initial public offering.” Avista Labs recentlyreceived a comprehensive patent securing the exclusive modulardesign of its PEM fuel cell system, a “plug and play” feature thatallows fuel cell cartridges to be easily removed and replacedwithout interrupting power. The Labs arm of Avista Corp. is a jointdevelopment agreement with UOP to integrate its fuel cell with thenatural gas and propane fuel processor systems of UOP. Later thisyear, field testing will begin for the integrated units of UOP.Currently, Avista Labs is testing its fuel cell subracks in severallocations across the country, including Arizona Public Service inPhoenix, the Fuel Cell Test and Evaluation Center in Johnstown,PA., Tyndall Air Force Base in Panama City, FL, and as back-uppower within the Avista Utilities service territory in the PacificNorthwest.