MCN Energy Group surprised observers and angered some investorsyesterday by announcing the cancellation of its Michigan E&Psale and a sharp change in strategic direction to a more regionalfocus from a national one.
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Raymond James Eyes Production Drop
Raymond James & Associates’ gas analysts warned investors last week the latest production statistics indicate gas production is down 4-6% compared to last year and a tally of producers’ statistics for the second quarter by NGI found that conclusion to be accurate (See Table).
Raymond James Eyes Production Drop
Raymond James & Associates’ gas analysts warned investorsyesterday the latest production statistics indicate gas productionis down 4-6% compared to last year. The St. Petersburg, FL-basedfirm highlighted several indicators, including sharply loweryear-to-year storage injections, reduced E&P company productionfigures, a growing “balancing item” reported by the Department ofEnergy in its gas market statistics and a survey of three of thelargest gas producing states.
Lengthy CA Permitting ScaresOff Power Plant Investors
Ground was broken this month for development of a $275 million,540 MW natural gas-fired power plant in Arizona by San Jose,CA-based Calpine Corp., and close observers of California electricrestructuring are indicating this plant may be the first of manymore out-of-state plants designed to serve California.
Texas-New Mexico Power in Leveraged Buyout
TNP Enterprises, the parent company of Texas-New Mexico PowerCo. (TNMP), was bought by a group of investors headed by WilliamCatacosinos, the former CEO of Long Island Lighting Co., for $1billion, including assumed debt, the parties announced last week.The deal, which TNP said was the first leveraged buyout of anelectric utility, is expected to close in six to nine months.
Investor Group Buys TNP Enterprises
TNP Enterprises, the parent company of Texas-New Mexico PowerCo. (TNMP), was bought by a group of investors headed by WilliamCatacosinos, the former CEO of Long Island Lighting Co., for $1billion, including assumed debt, the parties announced yesterday.The deal, which TNP said was the first leveraged buyout of anelectric utility, is expected to close in six to nine months.
Lengthy CA Plant Permitting Scares Off Investors
Ground was broken last week for a $275 million, 540 MW naturalgas-fired power plant in Arizona by San Jose, CA-based CalpineCorp., and close observers of the California electric restructuringare indicating this may be the start of more to come throughout theSouthwest.
DLJ Bullish on Gas, Names Industry Top Picks
Columbia Energy Group moved into the group of Donaldson, Lufkin& Jenrette’s “top picks” for natural gas investors in thefirm’s latest Natural Gas Outlook 1999-2003. The report is thebiannual update of the firm’s analyses and recommendations in thegas industry.
Utility Stocks Weathering Storm
Just like a hurricane sends offshore rig crews to shore, atempest on the stock market can drive investors to the relativesafety of utility stocks. While many energy company stock pricesare buckling under the weight of the declining market, some utilitystocks are faring rather well, thank you. Duke Energy is anexample.
MCN Expects Earnings Won’t Meet Estimates
MCN Energy Group warned investors Friday it’s not likely to meetanalysts’ 1998 and 1999 earnings expectations of $1.64/share and$2.02/share, respectively, and reiterated its plan to sell itsexploration and production business, which includes more than 1.3Tcf of proved reserves, making the company among the top 20 largestindependent producers in the nation.