Judging

Judging from a recent survey, the secondary capacity marketappears to be working efficiently and not putting a crimp on gasindustry competition. While deal activity is leveling off, themarket is still dynamic enough to accommodate new entrants,according to energy industry consulting firm Skipping Stone Inc.

Judging from preliminary gas marketer ranking results for thefirst quarter, the big continue to get even bigger and the smallergas marketers are increasing their volumes as well. So far in NGI’smarketer survey, 13 of the top-20 increased their gas sales volumesby more than 1 Bcf/d from the same period in 1998. Only four of thetop-20 did less business in 1Q99 than 1Q98.

Like producers, local distribution companies are under the weather, too, judging by their year-end results. “It’s dismal,” said Merrill Lynch analyst Rebecca Followill, who follows LDCs.