Cuts

Williams CEO Steve Malcolm said last week during a UBS Warburg energy conference in New York that his company plans to cut $50 million in annual expenses in an effort to strengthen its balance sheet and prepare for the possibility that it will have to assume all or a portion of the $2.2 billion in debt of its former communications subsidiary.

Williams CEO Steve Malcolm said his company is cutting $50 million in annual expenses in an effort to strengthen its balance sheet and prepare for the possibility that it will have to assume $2.2 billion in debt from its former communications subsidiary.

After having one of the more bullish gas price forecasts on Wall Street, Raymond James is changing its tune because there’s a good chance this winter will be one of the warmest in history. The firm said Monday it was lowering its Henry Hub price forecast for the first quarter to $2.30 from $2.75 and its forecast for the second quarter to $2.80 from $3.25. Its forecast for the year was dropped to $3.25 from $3.50, but the firm expects a strong recovery in the last two quarters of 2002.

After having one of the more bullish gas price forecasts on Wall Street, Raymond James is changing its tune because there’s a good chance this winter will be one of the warmest in history. The firm said Monday it was lowering its Henry Hub price forecast for the first quarter to $2.30 from $2.75 and its forecast for the second quarter to $2.80 from $3.25. Its forecast for the year was dropped to $3.25 from $3.50, but the firm expects a strong recovery in the last two quarters of 2002.

Houston-based Noble Affiliates said Tuesday it would reduce its capital budget for the year, dumping 29% from its downstream projects and cutting more than half of its domestic offshore budget. However, domestic onshore exploration and development was almost doubled from last year’s allocation to $136 million, with the focus on properties picked up through its acquisition last year of Aspect Resources LLC of Denver.

Shell Canada Ltd. on Thursday said that based on “recent reserve studies” since 1999, it was revising downward by 300 Bcf — 27% — the estimated sales gas reserves of its portion of the Sable Offshore Energy Project (SOEP) from its original 1,100 Bcf. While it noted that “prospects off the East Coast remain encouraging,” and that it planned “significant exploration and development investments in the area,” the revised forecast could signal that natural gas supplies may not be as plentiful off Canada’s East Coast as it had first estimated.

Mirant’s stock price has plunged 60% since the beginning of December forcing the company to take drastic actions to restore investor confidence. Enron’s bankruptcy, Mirant’s credit rating downgrade by Moody’s Investor Services and questions about its accounting practices all have played a role in the collapse of its stock.

Shell Canada Ltd. on Thursday said that based on “recent reserve studies” since 1999, it was revising downward by 300 Bcf — 27% — the estimated sales gas reserves of its portion of the Sable Offshore Energy Project (SOEP) from its original 1,100 Bcf. While it noted that “prospects off the East Coast remain encouraging,” and that it planned “significant exploration and development investments in the area,” the revised forecast could signal that natural gas supplies may not be as plentiful off Canada’s East Coast as it had first estimated.

Houston-based Noble Affiliates said Tuesday it would reduce its capital budget for the year, dumping 29% from its downstream projects and cutting more than half of its domestic offshore budget. However, domestic onshore exploration and development was almost doubled from last year’s allocation to $136 million, with the focus on properties picked up through its acquisition last year of Aspect Resources LLC of Denver.