Hike

Utah regulators awarded Questar Gas an immediate increase in its general rates of slightly more than 3%, effective Dec. 30. The Salt Lake City, UT-based natural gas distribution company also had its allowed rate of return on equity raised to 11.2% from 11%.

Burlington Resources Inc. reported an 8.2% increase in third quarter earnings to $79 million, or $0.39 per diluted share, including a net after-tax gain of $0.12 per diluted share from asset sales and accompanying tax benefits. Higher production, including a 10% increase in gas production to 1.8 Bcf/d, and lower cash operating costs, along with higher oil prices and the asset sale and tax benefits, more than offset lower prices for natural gas and higher interest expenses and production taxes. Realized natural gas prices fell to $2.65/Mcf (Henry Hub) from $2.89 in 3Q2001.

Burlington Resources Inc. reported an 8.2% increase in third quarter earnings to $79 million, or $0.39 per diluted share, including a net after-tax gain of $0.12 per diluted share from asset sales and accompanying tax benefits. Higher production, including a 10% increase in gas production to 1.8 Bcf/d, and lower cash operating costs, along with higher oil prices and the asset sale and tax benefits, more than offset lower prices for natural gas and higher interest expenses and production taxes. Realized natural gas prices fell to $2.65/Mcf (Henry Hub) from $2.89 in 3Q2001.

Kinder Morgan Inc. (KMI) last week reiterated an earlier third quarter earnings guidance of 63 cents a share, with earnings of $2.64 a share for the year, maintaining a forecast for 34% growth over last year. Kinder Morgan Energy Partners LP (KMP), the master limited partnership, also held to its forecast to earn 45 cents per unit in the third quarter, and $1.83 per unit for the year, which would be a 17% gain over 2001. The forecasts mirror Wall Street expectations.

Kinder Morgan Inc. (KMI) on Wednesday reiterated an earlier third quarter earnings guidance of 63 cents a share, with earnings of $2.64 a share for the year, maintaining a forecast for 34% growth over last year. Kinder Morgan Energy Partners LP (KMP), the master limited partnership, also held to its forecast to earn 45 cents per unit in the third quarter, and $1.83 per unit for the year, which would be a 17% gain over 2001. The forecasts mirror Wall Street expectations.

El Paso Energy Partners LP (EPN) reported a 70% jump in second quarter 2002 net income over the similar time period a year ago. The company posted net income of $28.7 million ($0.33 per unit), up from $16.9 million ($0.19 per unit), excluding one-time charges in the second quarter of 2001. Including $5.1 million in one-time charges related to the sale of EPN’s interest in the UTOS pipeline, net income for the 2001 quarter was $11.8 million ($0.04 per unit).

As several competitors struggled for their very survival Tuesday, Duke Energy reported earnings rose to 57 cents per share in the second quarter from 54 cents a share a year ago, due to hefty profits in the company’s gas pipeline business, which it said offset lower results for its sagging merchant energy business. Despite the upbeat report, the company’s stock fell slightly to $19.06 a share in late-day trading.

As several competitors struggled for their very survival Tuesday, Duke Energy reported earnings rose to 57 cents per share in the second quarter from 54 cents a share a year ago, due to hefty profits in the company’s gas pipeline business, which it said offset lower results for its sagging merchant energy business. Despite the upbeat report, the company’s stock fell slightly to $19.06 a share in late-day trading.

The onset of competition in Canadian natural gas transportation may have made the field riskier for TransCanada PipeLines, but not by enough to persuade the nation’s principal regulator, the National Energy Board (NEB), that the change justifies rich compensation. The NEB handed down a long-awaited verdict on effects of industry upheavals since the late 1990s, concluding that the pipeline deserves a 2% raise in rates rather than the 12% increase it had requested.