Diversified

Duke Energy Corp.’s diversified portfolio, spread across seven business segments throughout the United States and abroad, was not enough to stabilize the energy giant in a year in which forecasts have been thrown out the window. Plagued by a prolonged economic downturn, investigations and continued market uncertainty, Duke readjusted its 2002 earnings guidance for the second time in two months on Friday, slicing another 50 cents off of expectations, and warning that next year could even be worse.

Mirant’s diversified global portfolio and growing gas merchant business in North America sent third quarter earnings soaring, with earnings from operations totaling $234 million or 67 cents per diluted share, compared to $119 million or 35 cents per diluted share for the third quarter, 2000. CEO Marce Fuller said the earnings have given the Atlanta-based company “increasing confidence in our ability to achieve earnings per share of $2.55 to $2.65 next year, and to grow off that base by at least 20% on average in subsequent years.”

MDU Resources Group, the diversified utility headquartered in Bismarck, ND, said it does not expect to meet its forecasts of $2.30-2.50 per earnings share for this year, and will see “significantly” lower earnings than the predicted $2.60 in 2002 because of the volatility in natural gas prices and a downturn in the economy. Still, MDU said it would stay the course on its long-term goal of an earnings per share growth of 10-12%, as well as a projected 30% increase in combined natural gas and oil production this year.

NorthWestern Corp., a $5 billion diversified services and solutions company based in Sioux Falls, SD, announced today that it has entered into a definitive agreement to acquire The Montana Power Co.’s energy distribution and transmission business for approximately $1.1 billion in cash, including approximately $488 million in existing Montana Power debt.

Cinergy Corp., a Cincinnati-based diversified energy company,placed an order with Capstone Turbine for $1.5 million. The 52-unitorder of microturbine power systems is part of Cinergy’s newdistribution agreement as one of Capstone Turbine’s major U.S.energy service providers. “The Capstone MicroTurbine is a majordevelopment in ultra-low-emission, ultra-low-maintenance powergeneration. These systems are about the size of a largerefrigerator and are intended to have virtually the sameset-it-and-forget operation profile,” said James E. Rogers, CEO ofCinergy. “Our short-term plans are to deploy these systems usingcrafted energy solution programs for customers that have animmediate need for small capacity additions, high power quality andhigh reliability. We expect, in time, distributed resources likethe Capstone MicroTurbine will reduce peak-demand strain on theelectric grid.”

In a new study forecasting gas supply and demand over the next15 years, GRI said demand will reach 32.7 Tcf by 2015, but theindustry will have to adapt to changing consumption patterns inorder to take advantage. The results of the report, titled “GRIBaseline Projection of U.S. Energy Supply and Demand to 2015, 2000Edition,” were released last week at the National Press Club.