Independents

Soaring oil and gas sales pushed two of North America’s largest independents, Devon Energy Corp. and EnCana Corp., to record first quarter earnings. Devon’s net earnings were $436 million ($2.76 a share), compared with $62 million (41 cents) a year ago. Meanwhile, Calgary-based EnCana earned C$1.246 billion (C$2.57), versus C$163 million (34 cents) for the same period of 2002.

Large producers, both majors and independents, “have confidence that natural gas price indices are fundamentally sound,” the Natural Gas Supply Association said in a letter to FERC Chairman Pat Wood last Tuesday, refuting comments to the contrary by Apache Corp. in a Washington Post article published March 1.

Large producers, both majors and independents, “have confidence that natural gas price indices are fundamentally sound,” the Natural Gas Supply Association said in a letter to FERC Chairman Pat Wood Tuesday, refuting comments to the contrary by Apache Corp. in a Washington Post article published March 1.

XTO Energy Inc. expects to grow its natural gas-heavy production base about 12% more than last year, with more than half of its development budget directed to East Texas activities. Meanwhile, Magnum Hunter Resources Inc. raised its week-old fourth quarter forecast, calling the previous estimate too conservative. And for smaller independent Remington Oil & Gas Co., recent exploratory successes have convinced the company to add more to its capital budget.

Oil and natural gas producers, particularly independents, are paying a heavy price in a bonding market that has grown increasingly tight in the wake of the Sept. 11 terrorist attacks and the major bankruptcies of Enron Corp. and K-Mart, six major producer groups told the Interior Department last week. They called on the agency to ease up on some of its bonding requirements for producers in light of market conditions.

Two gas-rich western independents, Black Hills Corp. and Mallon Resources Corp., last week announced a merger estimated at $52 million. Under the definitive agreement entered into by Rapid City, SD-based Black Hills, it also will acquire Denver-based Mallon’s debt to Aquila Energy Capital Corp., as well as $30.5 million of its outstanding hedges.

Two gas-rich western independents, Black Hills Corp. and Mallon Resources Corp., announced Tuesday a merger estimated at $52 million. Under the definitive agreement entered into by Rapid City, SD-based Black Hills, it also will acquire Denver-based Mallon’s debt to Aquila Energy Capital Corp., as well as $30.5 million of its outstanding hedges.

Oil and gas producers, particularly independents, are paying a heavy price in a bonding market that has grown increasingly tight in the wake of the Sept. 11 terrorist attacks and the bankruptcies of Enron Corp. and K-Mart, six major producer groups told the Interior Department Monday. They called on the agency to ease up on some of its bonding requirements for producers in light of market conditions.

The 11 majors and independents that produce about 14% of the natural gas for the Lower 48 are reporting a 1.7% sequential decline over the first quarter and a 5.8% decline over a year ago, according to research by Lehman Brothers’ analyst Thomas R. Driscoll. The analyst, who surveys a total of 45 producers that overall account for 70% of U.S. production, has revised a previous forecast of flat production for the quarter, and now predicts either a small increase or decrease, in the range of +0.4% to 0.4%, from the first quarter of this year.