Forecast

Energy marketer and trading giant Dynegy Inc., based in Houston, last week said it will meet or exceed Wall Street’s consensus estimates for the year of $2.07 recurring earnings per share. Dynegy management also reaffirmed its commitment to meet its 2002 estimates of $2.50-$2.60 per share, bucking the trend of several other energy companies in recent weeks that have adjusted their forecasts because of economic pressure.

Energy marketer and trading giant Dynegy Inc., based in Houston, said Monday it will meet or exceed Wall Street’s consensus estimates for the year of $2.07 recurring earnings per share. Dynegy management also reaffirmed its commitment to meet its 2002 estimates of $2.50-$2.60 per share, bucking the trend of several other energy companies in recent weeks that have adjusted their forecasts because of economic pressure.

MDU Resources Group, the diversified utility headquartered in Bismarck, ND, said it does not expect to meet its forecasts of $2.30-2.50 per earnings share for this year, and will see “significantly” lower earnings than the predicted $2.60 in 2002 because of the volatility in natural gas prices and a downturn in the economy. Still, MDU said it would stay the course on its long-term goal of an earnings per share growth of 10-12%, as well as a projected 30% increase in combined natural gas and oil production this year.

Unable to resist the weakness of weather fundamentals any longer, combined with facing the usual demand dropoff over a weekend, swing prices registered double-digit losses at nearly all points Friday. An Overnominations Day declaration for Saturday by Southern California Gas caused the biggest drop of about half a dollar at border-SoCal Gas.

Phillips Petroleum Co., which holds down fifth place on the list of oil and gas companies worldwide, said its second quarter profits were up more than expected, jumping 37% on crude oil, natural gas and gasoline commodity pricing. Phillips, in the process of acquiring Tosco Corp., said income excluding special items was up to $601 million, or $2.33 a share, compared with $439 million, or $1.72 a share for the second quarter of 2000. However, revenues were lower, falling to $5 billion from $5.4 billion a year ago.

Buoyed by a price-constructive intermediate-range weather forecast and stronger cash market prices, natural gas futures shuffled higher for the second-straight session Monday amid light short covering and fresh long accumulation. Although unable to sustain a move back above the $3.00 mark, bulls were impressed by the market’s ability to rebound from a late morning dip to the low $2.90s. Bears, meanwhile appear more convinced than ever that the market will continue lower. At the closing bell, the August contract was 2.3 cents stronger at $2.978.

Questar Corp.’s initial results from the 2001 drilling and completion operations on the Pinedale Anticline in western Wyoming are encouraging enough to warrant more drilling and additional gathering facilities, company officials said last week, projecting that based on the new results, oil and gas production at year-end 2001 could triple over year-earlier levels.

Questar Corp.’s initial results from the 2001 drilling and completion operations on the Pinedale Anticline in western Wyoming are encouraging enough to warrant more drilling and additional gathering facilities, company officials said Monday, projecting that based on the new results, oil and gas production at year-end 2001 could triple over year-earlier levels.

In a new report, the Minerals Management Service has updated its Gulf of Mexico forecast for daily oil and gas production, predicting that between now and 2005, gas production will be 11.10 Bcf/d to 16.54 Bcf/d and oil production will be 1.526 MMbbl/d to 1.967 MMbbl/d. The greatest potential for development, said the federal agency, is in deepwater of 1,000 feet or more.