Enron’s retail energy provider, Enron Energy Services (EES), hasnot turned a profit to date but is expected to do so by the fourthquarter of this year and “from then on,” said Marty Sunde, EES’senior vice president of sales and marketing.
Expects
Articles from Expects
EOG Reserve Replacement Exceeds 375%
Enron Oil & Gas Co. said it expects 1998 all-sources netproved reserve additions of more than 1.6 Tcfe, resulting in areserve replacement ratio greater than 375%. The company’s 1998production is estimated to be 420 Bcfe, and 1998 average unitfinding cost is anticipated to be below 50 cents/Mcfe. Of thereserves added in 1998, about 800 Bcfe were added in Trinidad,300Bcfe in India and 500 Bcfe in North America.
PP&L Inks Major Power Marketing Deal with ENE
PP&L, Inc., a subsidiary of Allentown, PA-based PP&LResources, said it expects to sign an agreement to providewholesale electric power marketing, trading and risk-managementservices on a “round- the-clock” basis to Energy New England LLC,an energy cooperative organization formed to provide energy andrelated services to public power entities in New England. ENErepresents about 700 MW of peak load and 850 MW of energy supply.It is the largest wholesale aggregator of public power system loadand generation assets in the New England region.
UPR Cuts Staff, Expects 4Q Charge
Following the lead of numerous other oil and gas companies whoare trimming staff this year because of low commodity prices, UnionPacific Resources Group announced it will reduce headquarters staffby 14%, or about 140 positions. Combined with attrition, UPR’sheadquarters staff will have been reduced by about 20% since thebeginning of the year.
PacifiCorp Anticipating Earnings Shortfall
PacifiCorp said last week it expects its third-quarter earningswill be 50% below securities analysts’ expectations of $0.41/shareand its annual earnings will be significantly below analysts’forecast of $1.27 per share.
NGSA Sees 200 Bcf of Demand from NOx Standards
The Natural Gas Supply Association said it expects an additional200 Bcf/year of incremental gas demand growth by 2005 from theEnvironmental Protection Agency’s new more competitive standardsfor NOx emissions from new power generation boilers. EPAAdministrator Carol Browner signed the final rule, Utility BoilerNox New Source Performance Standards (NSPS), last week.
MCN Expects Earnings Won’t Meet Estimates
MCN Energy Group warned investors Friday it’s not likely to meetanalysts’ 1998 and 1999 earnings expectations of $1.64/share and$2.02/share, respectively, and reiterated its plan to sell itsexploration and production business, which includes more than 1.3Tcf of proved reserves, making the company among the top 20 largestindependent producers in the nation.
Amoco Has Cotton Valley Success
Amoco announced a gas discovery in the Cotton Valley Reef Trendnorth of Houston. The company said it expects to bring its No. 1 J.W. Vanderbeek on production this month. Amoco holds a strongposition in the Cotton Valley Reef Trend, with drilling rights inmore than 100,000 acres, primarily in Leon County. Amoco has acontract with Koch Midstream Services to use their pipelines in thearea to gather the gas for treatment and delivery to marketsthroughout the Texas Gulf Coast region.
Spot Purchases Take Bite Out of Quarterly Profits
Ohio-based FirstEnergy Corp. reported yesterday that it expectssecond-quarter net income for the entire corporation to take a hitof about $80 million as a result of the supply constraints andsubsequent market volatility in late June that sent spot prices fora MWh of power soaring into the thousands of dollars.
MCN Exits Exploration, Takes $225 Million 2Q Charge
MCN Energy Group announced last week it plans to exit theexploration business, and expects to take a second quarter chargeon earnings of $225 million because of low oil and gas prices andthe under-performance of certain exploration properties in theMidcontinent and Gulf Coast regions.