Income

Anadarko Petroleum Corp. reported a 50% surge in quarterly profit on Friday, lifted by record commodity prices. Net income rose to $598 million ($2.51/share), from $300 million ($1.58) in 3Q2004. CEO Jim Hackett said the company “hit the middle of our target range” for production, with organic volumes up 8% so far this year.

In its third deal in less than a month, Calgary-based AltaGas Income Trust on Tuesday announced it will pay C$9.5 million (US$8.06 million) to acquire a 100% working interest in the Blair Creek Gas Plant, located northwest of Fort St. John, BC. The 24 MMcf/d sweet gas processing facility is expected to be in service by November 1.

Midstream natural gas sales moved 22% higher, but Dallas-based Crosstex Energy Inc. reported Tuesday that its second quarter income fell nearly 28%, to $1.7 million (14 cents/share), down from $2.4 million (19 cents) in 2Q2004. Revenue was $630.9 million, well ahead of $516.1 million reported a year ago.

Dynegy Inc. reported second quarter net income of $32 million (8 cents/share), a huge jump from the $2 million (1 cent/share) it reported for the same period a year ago. Most of the year-over-year increase was attributed to a $125 million deferred tax valuation allowance resulting from its anticipated sale of its midstream natural gas business, which was announced last week (see Daily GPI, Aug. 3).

Chesapeake Energy reported a 99% increase in second quarter net income to $163.8 million, or $1.71/share, from $97.2 million, or $1.12/share. The company’s production rose 31% to 1,244 MMcf/d, 89% of which is natural gas. Its average realized gas price rose to $5.95 from $4.87Mcf in 2Q2004. Chesapeake’s proved reserves reached 5.9 Tcfe, with 948 Bcfe added in the first half of the year. The company’s reserve replacement equaled 535% at a drilling and acquisition cost of $1.49/Mcfe.

Despite increased results from utility operations, Minneapolis-based Xcel Energy Wednesday reported that its overall income from continuing operations for the second quarter was $78 million, or 19 cents/diluted share, compared with $86 million, or 21 cents/share, for the same period last year. Total earnings were $83 million, or 20 cents/share, for the second quarter, compared with $86 million, or 21 cents/share, in the same period in 2004.

Net income was $33.1 million (36 cents/share) for the first quarter, a 29% increase over the $19.3 million (28 cents) posted in 1Q2004′. Total revenues were $147.2 million, an increase of 47% compared with $100.4 million a year earlier. Operating profits were $61.9 million, a 52% increase over the $40.6 million in 1Q2004, and net cash increased 19% to $68.9 million from $58.2 million.

A bipartisan group of senators last week called on the Bush administration to release the final $100 million in emergency funding for Low-Income Home Energy Assistance Program (LIHEAP) that helps needy families pay their utility bills. They also recommended that the annual LIHEAP budget be expanded.

Enterprise Products Partners LP, which merged with GulfTerra Energy Partners LP last year, more than tripled its net income in the fourth quarter, reporting earnings of $115.4 million (28 cents/unit), compared with $34.2 million (13 cents) in 4Q2003. For the year, Enterprise earned $268.3 million (87 cents/unit), compared with $104.5 million (41 cents) in 2003.