Estimate

The Energy Information Administration (EIA), in its Short-Term Energy Outlook for May, again raised its projection for the average spot price of natural gas this year — by 7% to an average of $5.80/Mcf from the $5.40/Mcf that it had projected last month.

In an effort to more accurately estimate retail natural gas prices, the Energy Information Administration said Tuesday in a Federal Register notice that it is seeking public comment on a proposal to expand its Form EIA-910, the “Monthly Natural Gas Marketer Survey,” to include data from retail marketing companies serving seven additional states and the District of Columbia.

The Energy Information Administration (EIA), in its Short-Term Energy Outlook for May, again raised its projection for the average spot price of natural gas this year — by 7% to an average of $5.80/Mcf from the $5.40/Mcf that it had projected last month.

In an effort to more accurately estimate retail natural gas prices, the Energy Information Administration said Tuesday in a Federal Register notice that it is seeking public comment on a proposal to expand its Form EIA-910, the “Monthly Natural Gas Marketer Survey,” to include data from retail marketing companies serving seven additional states and the District of Columbia.

Coming in above its estimate for oil and gas production last year, Pioneer Natural Resources also reported Monday that it scored a new record for net income, with $410.6 million ($3.46/share), compared with $26.7 million (23 cents) in 2002.

Dynegy Inc. shares tumbled more than 4% to $3.04 Wednesday after the company cut its full-year earnings guidance estimate to ($0.07) to $0.01 per share from the $0.10 to $0.18 per share it predicted in April and reported that its liquidity position fell about $364 million since last month to $1.7 billion, including $644 million in cash.

Anadarko Petroleum Corp. on Thursday cut 100 exploration and production (E&P) staff positions — including several senior executives — and closed its offices in Midland and Amarillo, TX, which will eliminate more than 15%, or $100 million, in total overhead costs. The cost cutting news preceded an earnings report that showed a 26% gain from a year ago, but changes had been rumored after the company confirmed two days ago that it would shutter some of its onshore U.S. rigs (see Daily GPI, July 30).

With an increased number of companies reporting, Lehman Brothers has revised its estimates of natural gas production in the United States for the first quarter, showing a 0.7% increase sequentially from 4Q 2002 and a 2.2% decline from the first quarter a year ago. The estimates are based on 58% of the 49 companies in Lehman’s survey reporting gas volumes. Thirteen more companies are slated to report by the end of the week.

Southwest Gas Corp. said it expects its first quarter operating results to fall short of the consensus street estimate by one-third. The utility company attributed the lower results to warmer-than-normal weather in its two primary operating areas. Nevada experienced its warmest January on record and Arizona saw its second warmest. Unseasonably warm temperatures continued through March. Southwest expects to release its earnings for the first quarter near the end of April.