Earnings

In addition to much improved fourth quarter earnings and cash flow and a bullish outlook for 2003 and 2004, Dallas-based Pioneer Natural Resources said it made a significant new deepwater Gulf of Mexico discovery on its Harrier prospect near the Falcon field. The well was drilled to 9,510 feet and encountered over 350 feet of gas-bearing sand in a single zone.

Marathon Oil Corp. showed a nearly 100% gain on fourth quarter net income from $98 million, or $0.32 per diluted share in 2001, to $194 million, or $0.62 per diluted share in 2002. The company also reported last week it had achieved a 250% reserve replacement ratio, including expansion of its Powder River Basin coalbed methane holdings.

Marathon Oil Corp. showed a nearly 100% gain on fourth quarter net income from $98 million, or $0.32 per diluted share in 2001, to $194 million, or $0.62 per diluted share in 2002. The company also reported it had achieved a 250% reserve replacement ratio, including expansion of its Powder River Basin coalbed methane holdings.

Canadian Superior reported record production growth of 150% in the third quarter compared to third quarter 2001, but posted a net loss of C$821,000 for the quarter and C$1.6 million for the first nine months of 2002, due largely to increased non-cash depletion expenses, compared to a loss of C$95,000 and income of C$8,789,000, respectively, for the same periods during 2001.

Mirant Corp. reported last Thursday it overstated its net income from 1999 through the first half of this year by $41 million, but it said an independent review of its books found no fraud was committed by the company. The Atlanta-based company also revealed that the Department of Justice is looking into its energy trading practices and certain accounting matters.

Mirant Corp. reported Thursday it overstated its net income from 1999 through the first half of this year by $41 million, but it said an independent review of its books found no fraud was committed by the company. The Atlanta-based company also revealed that the Department of Justice is looking into its energy trading practices and certain accounting matters.

Despite recent earnings and regulatory setbacks focused on its energy trading operations, PG&E Corp.’s National Energy Group (NEG) has no intention of discontinuing its trading operations even with last Thursday’s announcement of cutbacks totaling $40 million annually in its merchant energy businesses. Trading is profitable and contributing to PG&E NEG’s positive cash flow, company officials indicated.

Although it beat consensus estimates by a fairly large margin, higher production by Burlington Resources failed to offset lower commodity prices during the second quarter, as the company reported a 26% drop in net income to $170 million, or $0.84 per diluted share, compared to $231 million, $1.10/share in 2Q2001. Wall Street was expecting about 38 cents per share.

Higher production by Burlington Resources failed to offset lower commodity prices during the second quarter, as the company reported a 26% drop in net income to $170 million, or $0.84 per diluted share, compared to $231 million, $1.10/share in 2Q2001.