Fell

Despite higher commodity prices and a contribution from Russian exploration, BP plc’s earnings fell flat in the final quarter of 2003, pulled down by a weak U.S. dollar and restructuring charges. Quarterly profit was $2.67 billion, up 1% above $2.64 billion reported a year ago, but below Wall Street’s forecast of $3.01 billion.

Domestic consumption of natural gas fell by an estimated 2.6% during 2003 due largely to the high gas prices that destroyed demand in the industrial and electric power sectors, according to the Energy Information Administration’s Short-Term Energy Outlook for January.

Domestic consumption of natural gas fell by an estimated 2.6% during 2003 due largely to the high gas prices that destroyed demand in the industrial and electric power sectors, according to the Energy Information Administration’s Short-Term Energy Outlook for January.

While total U.S. dry natural gas production fell 3.2% last year to about 19.1 Tcf, according to the Energy Information Administration, gas production from onshore marginal wells producing 60 Mcf/d or less actually rose by about 65 MMcf/d, according to a preview of the Interstate Oil and Gas Compact Commission (IOGCC) annual survey.

Gas prices fell about 20 cents last week at most points East of the Rockies despite the loss of about 8 Bcf of gas production because of shut ins in the Gulf of Mexico due to Hurricane Claudette. While about 2.7 Bcf/d of supply was knocked out on Tuesday when the hurricane made landfall on the central Gulf Coast of Texas near Matagorda Bay, nearly all of the supply was back on stream by Friday.

Mirant shares fell another 14% Wednesday morning a day after the company said it would delay the release of its quarterly and year-end earnings because of an ongoing audit (see Power Market Today, Feb. 26). Mirant shares were down 23 cents to $1.39 at 2 p.m.

Shares of Upper Midwest gas and electric utility company NorthWestern Corp. fell 7% by Wednesday afternoon to $2.57/share after the company announced that it is suspending its common stock dividend and expects about $700 million in special charges for 2002 because of the poor performance of its investments in CornerStone Propane, communications network provider Expanets, and heating and airconditioning unit Blue Dot.

Shares of Upper Midwest gas and electric utility company NorthWestern Corp. fell 7% by Wednesday afternoon to $2.57/share after the company announced that it is suspending its common stock dividend and expects about $700 million in special charges for 2002 because of the poor performance of its investments in CornerStone Propane, communications network provider Expanets, and heating and airconditioning unit Blue Dot.

Earnings for Portland, OR-based Northwest Natural Gas Co. fell last year, compared to the previous calendar year due to its aborted attempt to purchase of Enron Corp.’s Portland General Electric (PGE) subsidiary and a warm December.