Economy

U.S.-Based Drillers See More Rig Ramp-Ups as E&Ps Look for Natural Gas

Despite the mixed signals in the economy, U.S.-based land and offshore drilling contractors are reporting sequential gains for services and rigs over the first part of the year, especially by aggressive independents on the hunt for natural gas. And if gas prices remain high, most of the contractors expect the domestic rig count to rise both onshore and offshore through the rest of 2003.

August 6, 2003

Sempra Not Worried About Argentina Gas Utility Investments

Argentina’s scrambled economy that has drawn front-page attention from some major U.S. financial news media so far does not worry San Diego-based Sempra Energy, which has significant interest in two natural gas utilities.

December 23, 2002

Analysts Up Gas Price Forecasts, Assume Even More Bullish Tone

Based on the recent resurgence in the U.S. economy and the technical gas futures rally sparked in part by a surge in oil prices, Salomon Smith Barney (SSB) analyst Robert Morris has raised his natural gas price forecast for 2002 and 2003, joining the ranks of other investment analysts. Earlier last week, Raymond James & Associates analyst Wayne Andrews cited stronger supply-driven fundamentals as a reason for his more bullish near-term gas outlook for higher prices during the second and third quarters.

April 8, 2002

Economy, Lack of Demand Sink Sonoran Pipeline to California

A major new pipeline project to serve the California market has fallen by the wayside, the victim of lower demand, according to sponsors Kinder Morgan Energy Partners LP (KMP) and Calpine Corp. The two companies said they were dropping their $1.7 billion, 1,030 mile proposed pipeline that would have run from the San Juan Basin in New Mexico to Needles and Topock near the California border.

February 25, 2002

Economy, Lack of Demand Sink Sonoran Pipeline to California

A major new pipeline project to serve the California market has fallen by the wayside, the victim of lower demand, according to sponsors Kinder Morgan Energy Partners LP (KMP) and Calpine Corp. The two companies said Friday they were dropping their $1.7 billion, 1,030 mile proposed pipeline that would have run from the San Juan Basin in New Mexico to Needles and Topock near the California border.

February 19, 2002

Raymond James: Good Time to buy Energy Stocks

Energy prices may be falling and the “global economy has been in the toilet,” but Raymond James Energy analysts believe energy stocks are at the bottom of a cyclical downturn, and as “strong commodity fundamentals” become visible in the first quarter,” the stocks will begin to rise again. In the Stat of the Week on Jan. 7, the analysts noted that balance sheets are stronger, the industry has consolidated and absolute energy prices are “meaningfully higher today” than they were in the last downturn in 1999.

January 14, 2002

Raymond James: Good Time to buy Energy Stocks

Energy prices may be falling and the “global economy has been in the toilet,” but Raymond James Energy analysts believe energy stocks are at the bottom of a cyclical downturn, and as “strong commodity fundamentals” become visible in the first quarter,” the stocks will begin to rise again. In the Stat of the Week Monday, the analysts noted that balance sheets are stronger, the industry has consolidated and absolute energy prices are “meaningfully higher today” than they were in the last downturn in 1999.

January 8, 2002

ExxonMobil Earnings Down 23%; Gas Volumes Off 16%

Rapidly declining gas and oil prices, a weakening economy and higher operating costs pressured ExxonMobil Corp. earnings down 23% or $970 million, excluding merger effects, to $3.3 billion ($0.48 per share). Earnings per share declined by 20%. Domestic natural gas sales were off more than 16% from the same period last year.

October 24, 2001

El Paso CEO: Earnings Outlook ‘Excellent’

Despite the downturn in the U.S. economy and the recent drop in natural gas and oil prices, Houston-based El Paso Corp. expects to meet or beat Wall Street’s third quarter earnings estimate, CEO William A. Wise said Thursday. The corporation expects full-year 2001 earnings to total $3.30 per diluted share before non-recurring charges, and meet or exceed First Call’s third quarter estimate of $0.74 a share.

October 8, 2001

El Paso CEO: Earnings Outlook ‘Excellent’

Despite the downturn in the U.S. economy and the recent drop in natural gas and oil prices, Houston-based El Paso Corp. expects to meet or beat Wall Street’s third quarter earnings estimate, CEO William A. Wise said Thursday. The corporation expects full-year 2001 earnings to total $3.30 per diluted share before non-recurring charges, and meet or exceed First Call’s third quarter estimate of $0.74 a share.

October 5, 2001