Cents

A software glitch led Oneok to reduce its 2005 net income by $8.1 million (8 cents/share) and its energy services operating income by $13.2 million and raise its 1Q2006 earnings by similar amounts.

Rebounding from Monday’s 24.3-cent decline, April natural gas futures on Tuesday climbed as high as $6.750 before settling at $6.678, up 13.1 cents for the day. Despite the bounce, market experts said the level of bearish fundamentals in the market right now would make any sort of significant rally difficult.

Calpine shares lost more than half (71 cents) of their value on Tuesday after the company announced the departure of founder and CEO Peter Cartwright and CFO Robert D. Kelly.

Finishing higher for only the second day out of eight, December natural gas futures on Monday climbed 45.8 cents to settle at $11.873. Despite the sizeable jump, one broker said the downtrend is still healthy, adding that Monday’s price action was just a short-covering rally.

Cash numbers were firmer again Wednesday in most cases, but several points that were flat to nearly 35 cents lower continued to keep the market from uniting in consistent price movement. Some prior-day screen support and the persistence of Gulf Coast supply shortfalls were considered the key reasons behind gains ranging from about a nickel to a dollar.

Williams’ board on Wednesday approved a 50% dividend increase to 7.5 cents per share on the company’s common stock. This is the second increase in the Williams dividend over the past year. In November 2004, Williams increased its dividend from a penny to a nickel. “We’re successfully executing our business plan and using our financial discipline to create superior, sustainable growth in shareholder value,” said CEO Steve Malcolm. “The dividend increase reflects the confidence we have in our business and our substantial liquidity position. Williams’ strong, sustainable cash flow is enabling growth initiatives, credit improvement and a positive return to our shareholders.”

Prices were mixed in the East Friday, ranging from as much as about 15 cents lower to a little more than a dime higher. Many points were flat or close to it. Despite torrid weather continuing in much of the West, quotes fell from about a nickel to almost a quarter at nearly all point in that region. Only flat intra-Alberta and El Paso-Permian numbers and a rise of about a nickel at Waha diverged from the overall western softness.

Now more than a year out of Chapter 11 bankruptcy, what its CEO called “the new NRG Energy” Wednesday reported it was profitable in the fourth quarter and all of 2004 ($18.1 million, or 18 cents/diluted share for the fourth quarter, and $185.6 million, or $1.85/diluted share overall in ’04), including a $60 million mark-to-market gain associated with “financial electricity sales executed during the fourth quarter.”

Duke Energy met analysts’ earnings estimates for the quarter and beat estimates for the year by about 3 cents/share. The company reported earnings per share of $1.59 ($1.49 billion in net income) compared to a loss of ($1.48) per share in 2003, or a $1.32 billion loss. Ongoing basic earnings per share for 2004, excluding special items, were $1.38 versus $1.28 in 2003. Earnings in the fourth quarter were $0.38 per share, or $358 million, compared to a loss of ($2.23) per share, or a $2.02 billion loss, in the fourth quarter 2003. Excluding special items, ongoing basic earnings per share for fourth quarter 2004 were $0.24 versus $0.22 in fourth quarter 2003. “In 2004, we regained control of our own destiny,” said CEO Paul Anderson. “We exceeded the 2004 targets we set to rebuild our financial strength and finished this year in the driver’s seat to pursue new growth opportunities. We maintained our dividend, exceeded our goals in reducing debt and asset sales, and improved our merchant operation. As we move into 2005, we will build on those accomplishments and continue to fine-tune our portfolio.”