Distributed

More strong second quarter earnings were released on Wednesday, with ConocoPhillips, the third largest integrated major reporting a 75% increase in profit. Amerada Hess Corp. and Kerr-McGee Corp. also benefited from high prices, but only Kerr-McGee reported respectable production gains over the second quarter of 2003.

Natural Gas Intelligence (NGI) has broadly distributed a request for the cooperation of buyers and sellers in the wholesale natural gas market in increasing fixed price trading and reporting transactions to price survey publishers. “The combination of the collapse of the middle man marketing sector and the tight supply situation in the U.S., makes it imperative that all industry segments work to support the efficient operation of the wholesale market,” said the publishing company in a letter sent to several thousand buyers and sellers of natural gas.

Natural Gas Intelligence (NGI) has broadly distributed a request for the cooperation of buyers and sellers in the wholesale natural gas market in increasing fixed price trading and reporting transactions to price survey publishers. “The combination of the collapse of the middle man marketing sector and the tight supply situation in the U.S., makes it imperative that all industry segments work to support the efficient operation of the wholesale market,” said the publishing company in a letter sent to several thousand buyers and sellers of natural gas.

Under Canaan’s shareholder rights plan, preferred stock purchase rights will be distributed to shareholders of record as of the close of business on March 25. The shareholder rights plan actually was under consideration before the tender offer by Chesapeake. The rights plan is designed to assure that Canaan’s shareholders receive fair and equal treatment in the event of any proposed takeover of the company and to deter potential abusive tactics to gain control of the company without paying a fair price to shareholders. The plan won’t prevent a takeover, but should encourage anyone seeking to acquire the company to negotiate with the board. The rights will be exercisable only if a person or group acquires 15% or more of the company’s common stock.

In keeping with its plan to merge with National Grid USA and focus on regulated energy transmission and distribution businesses, Niagara Mohawk Holdings Inc. on Tuesday sold its unregulated energy marketing and services subsidiary to Select Energy Inc., a subsidiary of Northeast Utilities. Terms of the sale of Niagara Mohawk Energy Marketing Inc., were not disclosed.

Producers may be walking around barefoot and hungry after thefinancial struggle in 1998, but LDCs’ wallets are thin as well. Theexceptionally warm year cut gas distribution throughputsignificantly and several local distribution companies ended theyear in the red. Average net income declined 10% for 19 gas andcombination utilities that reported earnings last week or the weekprior.

GE Power Systems and Plug Power have signed a memorandum ofunderstanding to form “GE Fuel Cell Systems,” a joint venture thatwill sell, install and service Plug Power-designed and manufacturedfuel cell systems. The announcement last week follows Plug Power’srecent demonstration of a prototype residential fuel cell systemthat produces more than enough power to meet the energyrequirements of an average-sized home.