Income

In reporting record third quarter improvements, including an 88%increase in earnings per share and a 16% increase in net income,Dynegy CEO Chuck Watson yesterday highlighted an aggressive powergeneration plan that will become the “engine for the growth of ourearnings for the future.”

Despite record production Enron Oil & Gas (EOG) reportedthird quarter net income of $5.9 million, down from $31.2 millionin the third quarter of 1997.

Occidental Petroleum Corp. reported a $28 million increase innet income for the second quarter compared with 2Q97. Resultsreflected a $290 million pretax gain from the sale of certain oiland gas assets. Earnings before special items were $47 million forthe second quarter of 1998, compared with $138 million for the sameperiod in 1997, reflecting lower crude oil prices.

Funding for the Low Income Home Energy Assistance Program(LIHEAP) is up in the air again with a Senate committeereauthorizing funding through 2004 and a House subcommittee votingto zero out 1999 fiscal year funding for the program. Rallying forLIHEAP’s continuation is the American Gas Association. “Thisunanimous [Senate] committee vote demonstrates the depth of supportthat LIHEAP has in the Senate. In fact, several senators at themarkup expressed their dismay about the House subcommittee actionto eliminate program funding,” said Steve Crout, AGA director ofgovernment relations. “We intend to fight hard to restore the ’99funding for LIHEAP, and today’s action shows that we can count onstrong support from the Senate.”

Enron Oil & Gas reported first quarter net income of $27.0million, 17 cents/share, compared to $23.1 million, 15 cents/share,for first quarter of 1997. Discretionary cash flow increased to$124.0 million in the first quarter of 1998 compared to $110.1million for the comparable quarter in 1997. Net operating revenuesincreased to $199.8 million in the first quarter of 1998 comparedto $180.7 million a year ago.