Estimates

Earlier estimates that North American E&Ps would boost their budgets in 2003 as much as 20% were about 5% too optimistic, because producers continue to be concerned about near-term natural gas prices, surplus gas storage and a lack of drilling prospects, according to research by RBC Capital Markets.

Fitch Ratings on Friday raised its previous oil and gas price estimates for the year, predicting natural gas prices will stabilize at $2.50/Mcf, and move to $2.75/Mcf in ’03, as production slowly creeps up toward the end of ’02. However, Fitch analyst Sean Sexton warned that the strip prices for gas still “may soften somewhat” with storage expected to be high through the year. “We estimate that currently, there is still half the gas in storage for next year…filling won’t be a problem even if demand comes back a little quicker.”

Cuts dealt to estimates of natural gas reserves offshore Nova Scotia this winter were only temporary setbacks to growth that still has potential to surprise even optimists, the National Energy Board has been assured. The region harbours up to 89 Tcf of gas or about twice as much as Alberta’s remaining established reserves, Maritimes & Northeast Pipeline said.

Carefully combing through its financial records for last year, like so many other energy companies these days, Northern Border Partners LP found a discrepancy related to some gathering and processing hedges. The company said it will have to revise downward previously estimated results for the fourth quarter and full year 2001.

Cuts dealt to estimates of natural gas reserves offshore Nova Scotia this winter were only temporary setbacks to growth that still has potential to surprise even optimists, the National Energy Board has been assured. The region harbours up to 89 Tcf of gas or about twice as much as Alberta’s remaining established reserves, Maritimes & Northeast Pipeline said.

Carefully combing through its financial records for last year, like so many other energy companies these days, Northern Border Partners LP found a discrepancy related to some gathering and processing hedges. The company said it will have to revise downward previously estimated results for the fourth quarter and full year 2001.

Dominion said Wednesday its 2001 operating earnings, excluding special charges, are expected to “meet or slightly exceed” analyst expectations of $4.15 per share, and it reaffirmed its 2002 earnings guidance of $4.90-4.95 per share. The higher earnings come despite fourth quarter write-downs of about $348 million, created by $97 million related to Enron Corp. exposure, a write-down of Dominion Capital assets worth $183 million, and a restructuring initiative announced in November, which will cost $68 million.

Dominion said Wednesday its 2001 operating earnings, excluding special charges, are expected to “meet or slightly exceed” analyst expectations of $4.15 per share, and it reaffirmed its 2002 earnings guidance of $4.90-4.95 per share. The higher earnings come despite fourth quarter write-downs of about $348 million, created by $97 million related to Enron Corp. exposure, a write-down of Dominion Capital assets worth $183 million, and a restructuring initiative announced in November, which will cost $68 million.

In an effort to reach higher post merger goals, ChevronTexaco now estimates it will reduce its work force by 4,500 rather than the 4,000 announced last month. The move is part of a program designed to produce savings of $1.8 billion by March 2003 ($1.2 billion of it in six to nine months) and a 2-3% increase in return on capital employed in 2003-2004. The company also said it is expecting long-term production growth of 2.5-3% over the next five years.