Growth

Calpine Corp., the San Jose, CA-based merchant power plantdeveloper/operator, continued its aggressive growth strategyMonday, announcing separate acquisition and strategic alliances inthe central midsection of the U.S. that eventually could make it by2005 the nation’s largest merchant power plant operator with theyoungest, most natural gas-intensive electricity generatingnetwork.

Despite 1999 production revenue increases of 51% and cash flow increases of 43%, Calgary-based Canadian 88 took a sharp hit to its bottom line by a natural gas forward sales contract, which resulted in the company posting a loss of $6.5 million ($0.06 per share). The company had reported earnings of $1.8 million ($0.02 per share) in 1998.

Despite 1999 production revenue increases of 51% and cash flowincreases of 43%, Calgary-based Canadian 88 took a sharp hit to itsbottom line by a natural gas forward sales contract, which resultedin the company posting a loss of $6.5 million ($0.06 per share).The company had reported earnings of $1.8 million ($0.02 per share)in 1998.

Florida Power & Light Co. says it will meet future customergrowth in this decade by increasing the electricity generatingcapability of its system by 24% using environmentally friendlynatural-gas technology.

The next growth step for Atlantic Canada’s fledgling natural gasindustry has popped up on the horizon in the form of a discoverywith potential to double offshore production and exports to NewEngland. Offshore of Nova Scotia, PanCanadian Petroleum Ltd.expects to know by the end of this year the true size of a gas findin the Sable Island region that it has christened Deep Panuke.

The next growth step for Atlantic Canada’s fledgling natural-gasindustry has popped up on the horizon, in the form of a discoverywith potential to double offshore production and exports to NewEngland. Offshore of Nova Scotia, PanCanadian Petroleum Ltd.expects to know by the end of this year the true size of a gas findin the Sable Island region that it has christened Deep Panuke.

Regulatory changes and steady growth in U.S. natural gasconsumption will trigger a 21% increase in storage capacity overthe next 15 years, according to a new study of gas storage by theGas Research Institute.

Citing confidence in growth prospects, San Francisco-basedChevron Corp. said it plans to spend $5.2 billion this year. Still,that figure, which includes increased investment in Dynegy Inc., isless than estimated 1999 spending. “We’ll devote the majority ofour capital dollars to developing the high potential of ourextensive worldwide upstream portfolio, including recent propertyacquisitions in Thailand and Argentina,” said CEO Dave O’Reilly.

Citing confidence in growth prospects, San Francisco-basedChevron Corp. said it plans to spend $5.2 billion this year. Still,that figure, which includes increased investment in Dynegy Inc., isless than estimated 1999 spending. “We’ll devote the majority ofour capital dollars to developing the high potential of ourextensive worldwide upstream portfolio, including recent propertyacquisitions in Thailand and Argentina,” said CEO Dave O’Reilly.