Doubles

PNM Resources intiated the latest mega utility merger last week with the planned $1 billion purchase, including debt assumption, of neighboring utility holding company TNP Enterprises Inc. The purchase will double PNM’s customer base in the Southwest. PNM also raised its earnings guidance for the year, but it failed to meet Wall Street estimate of second quarter earnings.

Despite falling short of analysts’ earnings estimates in the second quarter, PNM Resources shares moved higher Monday on the company’s $1 billion purchase, including debt assumption, of neighboring utility holding company TNP Enterprises Inc. The purchase will double PNM’s customer base in the Southwest. PNM also raised its earnings guidance for the year.

Magnum Hunter Resources Inc. last week doubled the amount of oil and natural gas properties it holds in its successful onshore core region of southeastern New Mexico with a $243 million purchase from EnCana Corp., which obtained the properties through its acquisition with Tom Brown Inc. The properties represent a 72% increase to Magnum Hunter’s existing 32 MMcfe/d of production from existing properties in New Mexico and approximately 11% of its current total net daily production.

Crosstex Energy LP took a big leap forward in its Gulf Coast midstream and pipeline expansion plans with the purchase of Louisiana Interstate Gas (LIG) from American Electric Power for $76.2 million.

Crosstex Energy LP took a big leap forward in its Gulf Coast midstream and pipeline expansion plans with the purchase of Louisiana Interstate Gas (LIG) from American Electric Power for $76.2 million.

Marathon Oil Corp.’s 2003 profit more than doubled on gains from asset sales, but its operating earnings dropped because of declining oil and gas production and weak refining earnings. For the year, Marathon reported net income of $1.321 billion ($4.26/share), compared with 2002 net income of $516 million ($1.66/share). Adjusted earnings were $1 billion ($3.33/share), compared with the prior year’s $563 million ($1.81/share).

Strong natural gas prices and an asset sale helped double the quarterly income and revenue at Houston-based GulfTerra Energy Partners LP, the company said Monday.

Mirroring earlier quarterly reports of its oil and gas peers, Magnum Hunter saw its income nearly double from a year ago, but actual production numbers were down. While core production grew 7%, the Irving, TX-based independent reported a decline in actual boe production of 8% from 2Q02, which it attributed to non-core property sales in fiscal 2002 and 2003.

Answering the call for increased domestic natural gas production in the light of a tight natural gas supply market, Magnum Hunter said last week that it upped its gas production from an average of 73,424 Mcf/d during the fourth quarter of 2001 to 130,655 Mcf/d for the fourth quarter ended Dec. 31, 2002, partly due to a major acquisition.