Integrateds

In a report forecasting performance by both integrated and exploration and production (E&P) companies in 2005, CreditSights analysts said they expect earnings and cash flow to be at or above record levels, aided by commodity prices and stronger production. Current commodity price estimates are too low, they said, “leaving ample room for upward earnings revisions in the coming months.”

In a report forecasting performance by both integrated and exploration and production (E&P) companies in 2005, CreditSights analysts said they expect earnings and cash flow to be at or above record levels, aided by commodity prices and stronger production. Current commodity price estimates are too low, they said, “leaving ample room for upward earnings revisions in the coming months.”

The final quarter of 2004 should give U.S. oil and natural gas companies enough free cash flows and opportunities to fortify balance sheets and address operational deficiencies, according to a report issued Wednesday by Standard & Poor’s Ratings Services (S&P).

The final quarter of 2004 should give U.S. oil and natural gas companies enough free cash flows and opportunities to fortify balance sheets and address operational deficiencies, according to a report issued Wednesday by Standard & Poor’s Ratings Services (S&P).

Prudential Equity Group has raised natural gas and oil price forecasts for this year and through 2005, and analysts also expressed enthusiasm for exploration and production companies in a new report. Merrill Lynch also warmed to integrated oil and natural gas producers, noting that the rally in commodity prices should encourage long-term investments.

Canada’s largest integrated oil and natural gas company, Imperial Oil Ltd, failed to take advantage of record commodity prices in the second quarter, with profit falling 12%. The country’s number two integrated, Shell Canada, reported a huge earnings drop in its exploration and production (E&P) segment, but results were boosted with the ramp up of the Athabasca oil sands project in Alberta.