With Canada and much of the northern U.S. experiencing deep-freeze low temperatures and a more-of-the-same outlook for Wednesday, the market continued to eke out small, single-digit gains at most points Tuesday.
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Rigs Lost as Lili Hits Offshore Hard With 150 mph Winds, 30-Foot Swells
Two drilling rigs capsized, another was blown 45 miles from its mooring and one platform was damaged, according to early reports, as Hurricane Lili went through the Gulf of Mexico production area early Thursday as a category 4, before dropping in intensity and hitting the Louisiana coast as a category 2 with winds of less than 110 mph.
Rigs Lost as Lili Hits Offshore Hard With 150 mph Winds, 30-Foot Swells
Two drilling rigs capsized, another was blown 45 miles from its mooring and one platform was damaged, according to early reports, as Hurricane Lili went through the Gulf of Mexico production area early Thursday as a Category 4, before dropping in intensity and hitting the Louisiana coast as a Category 2 with winds of less than 110 mph.
Zone 6-NYC Leaps Again, Hits $10; Most Points Softer
Transco Zone 6-New York City again skyrocketed by more than a dollar and further raised the peak price bar to $10 Tuesday, but the overall cash market rally had run out of gas, so to speak. Only Iroquois Zone 2 and Columbia-Appalachia managed to join NYC in higher numbers; the rest of the market ranged from flat to down about 20 cents. Most declines were around a dime or slightly less.
Williams Stock Hits 20-Year Low after 2Q Losses Reported
Williams stock fell to a 20-year low in trading Monday after the Tulsa-based energy company reported plans to post a recurring loss for the second quarter, largely due to failing conditions related to its energy marketing and trading business, sparking speculation that cash-strapped Williams could become the target of a takeover. The company said it would slash its dividend by 95% to one cent a share from 20 cents to conserve cash, and was “moving quickly” to complete a new secured financing arrangement to shore up its balance sheet.
Williams Stock Hits 20-Year Low after 2Q Losses Reported
Williams stock fell to a 20-year low in trading Monday after the Tulsa-based energy company reported plans to post a recurring loss for the second quarter, largely due to failing conditions related to its energy marketing and trading business, sparking speculation that cash-strapped Williams could become the target of a takeover. The company said it would slash its dividend by 95% to one cent a share from 20 cents to conserve cash, and was “moving quickly” to complete a new secured financing arrangement to shore up its balance sheet.
El Paso Stock Hits New Low Amid News of Trading Staff Cuts
El Paso Corp. stock took a pummeling on Wall Street last week after the company lowered its earnings projections for 2002 and 2003 to accommodate a major cutback in its energy trading work force and other streamlining actions. The Houston-based energy giant plans to slash its trading staff, primarily the power side, by 50% in an attempt to ease the concerns of investors and credit rating agencies. The expected cost savings/proceeds from this and other moves, such as debt reduction and asset sales, will be channeled to El Paso’s core natural gas businesses — exploration and production (E&P), liquefied natural gas (LNG), and its midstream and pipelines facilities.
Trauma Hits Energy Merchants, Several Begin Major Financial Overhaul
The financial pressure cooker is on high, and energy companies caught in the soup are scrambling to avoid getting burned. Early last week the kitchen got too hot for Dynegy Corp.’s Chairman and CEO Chuck Watson, who after 17 years, was immediately replaced by a top ChevronTexaco executive. By week’s end, El Paso Corp. and Williams Cos. had begun drastic financial measures to cool the credit rating agencies and investors. CMS Energy Corp. also joined in, moving to catapult what remains of its exploration and production division (see related stories).
Enron ‘Flu’ Hits Texas PUC, Chief Resigns
The Enron flu continues to spread, this time, taking down a former executive with the company. Texas Public Utilities Commission (PUC) Chairman Max Yzaguirre, once CEO of Enron de Mexico, resigned Thursday following months of controversy surrounding his appointment. Yzaguirre was appointed to the top state regulator post last June, but has been under scrutiny since his appointment; he has been criticized by several groups because of perceived conflict-of-interest charges (see Daily GPI, June 15, 2001).
Pipeline Expansion Hits Highs Not Seen Since 1960’s
Due to the increased natural gas demand in the country sparked by new gas-fired generation coming online, the United States is experiencing the largest wave of pipeline infrastructure expansion since the early 1960’s , according to a recent advisory from Industrial Information Resources Inc. (IIR). The consultant group said it expects 25,000 miles of gas transmission pipeline will be constructed by 2010 and an additional 13,000 miles by 2015, with estimates ranging up to 275,000 miles or more of distribution pipelines.