Earnings

Despite NiSource Inc.’s strong earnings posted for the fourth quarter and full year 2001, Moody’s Investor Services on Friday downgraded the company’s senior debt to Baa3 and its subsidiaries to Baa2, noting that the “outlook remains negative.” Moody’s said the downgrades reflect higher-than-expected debt levels and weaker-than-expected cash flow from the company’s subsidiaries.

ChevronTexaco Corp., which this week reported a huge drop in earnings for 2001 related to their merger, are set to go after either Phillips Petroleum Co. or Conoco Inc. to pick up assets that would boost production, according to an article in Wednesday’s Wall Street Journal. Phillips and Conoco announced their merger of equals last year, which would create the third largest integrated major in the United States and the sixth largest in the world (see Daily GPI, Nov. 20, 2001).

Niagara Mohawk Holdings Inc., the parent company of Niagara Mohawk Power Corp., reported earnings of $4.2 million, or three cents a share for the third quarter, up from $2.7 million or two cents for the same period of 2000. The Syracuse, NY-based company, which serves most of the State of New York, saw its electric revenues jump 13.4% from a year ago to $940.9 million. Retail sales and total deliveries of electricity also were up from the third quarter of 2000. Electric revenues for the 12 months ending Sept. 30, 2001 were $3.4 billion, up 4.1% from same period a year ago. Retail sales of electricity for the three months increased 1.6% and for the 12 months ending Sept. 30, decreased 2.3% compared to the same periods a year earlier. Total deliveries of electricity, which include deliveries to customers who chose to buy electricity from other energy service providers, were up 26.1% for the third quarter of 2001, and up 8.8% for the 12 months ending Sept. 30, compared to the same periods in 2000. Niagara Mohawk’s natural gas revenues for the third quarter of 2001 were $69.1 million, down 13.4% from the same period in 2000. For the 12 months ended Sept. 30, 2001, natural gas revenues were $786.1 million, up 31.1%, compared to the same period in 2000. Revenues in both periods were primarily influenced by the market price of natural gas. The company passes the commodity cost of natural gas directly on to customers without markup.

In a story that ran in the Oct. 25 edition of NGI’s Daily Gas Price Index, titled “El Paso Posts Solid Earnings, But Special Charges Lower Profits,” some comments were incorrectly attributed to El Paso Merchant Energy Group President Ralph Eads III. The comments were made by Greg Jenkins, CEO of El Paso Global Networks. The comments also contained some inaccuracies. Jenkins said, “The [global network business] has deteriorated much more over the course of the past several weeks and few months. The regulatory environment in our judgement is viewed unfavorably against real competition, and today the market fundamentals are very weak. Consequently we are reducing our focus [on telecommunications]. Our focus next year is going to be on those activities where that value is recognizable, that being the Texas market in particular, and maximizing returns on those assets.” Jenkins’ was not referring to the merchant generation business, and El Paso Corp. has reaffirmed its confidence in merchant generation and its position in that market. NGI regrets the errors.

As a precursor to releasing its third quarter earnings next week, Anadarko Petroleum Corp. reported Friday that it will record a non-cash, pre-tax charge of $827 million, or $483 million after-taxes ($1.81 per diluted share) in the quarter as a result of low natural gas prices and unusually high differentials for heavy oil at the end of the quarter.

Louis Dreyfus Natural Gas Corp. Tuesday announced record financial results for the second quarter 2001, with net income of $47.8 million, or $1.07 per share, on revenues of $157.4 million. This compares to net income of $9.1 million, or $0.22 per share, on revenues of $88.0 million for the second quarter of 2000. Net income excluding the non- cash impact of SFAS 133 derivative accounting was $47.9 million, or $1.07 per share, for the second quarter of 2001 and $16.5 million, or $0.39 per share, for the second quarter of 2000.

Barrett Resources Corp. unveiled its second quarter 2001 results Wednesday, which showed a strong increase over the equivalent time frame from 2000 due primarily to its gas business in the Rocky Mountains. The company reported net income of $55.1 million ($1.61 per diluted share) for the quarter that ended June 30, compared to a net loss of $4 million ($0.12 per diluted share) during the second quarter 2000.

Pinnacle West Capital Corp. reported that due to “a number of events” its consolidated net income for the second quarter came in below last year’s results for the same quarter. The company posted net income of $66.9 million ($0.79 per diluted share of common stock), compared to $89.9 million ($1.06 per share) for the same quarter a year ago.

Pinnacle West Capital Corp. reported that due to “a number of events” its consolidated net income for the second quarter came in below last year’s results for the same quarter. The company posted net income of $66.9 million ($0.79 per diluted share of common stock), compared to $89.9 million ($1.06 per share) for the same quarter a year ago.