Energy merchant and power generation company earnings could jump more than 30% in 2001, while earnings for integrated electric utilities could rise 12%, according to Steven Fleishman, head of Merrill Lynch’s global power and gas research group.
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Senators Warn Energy Prices Could Triple In 10 Years
If projections that overall demand for oil, natural gas and electricity will jump by 21% over the next decade are on target, U.S. energy prices could come close to tripling in just 10 years based on current supply levels, according to an analysis issued recently by Sens. Charles E. Schumer (D-NY) and Susan Collins (R-ME).
Senators Warn Energy Prices Could Triple In 10 Years
If projections that overall demand for oil, natural gas and electricity will jump by 21% over the next decade are on target, U.S. energy prices could come close to tripling in just 10 years based on current supply levels, according to an analysis issued last week by Sens. Charles E. Schumer (D-NY) and Susan Collins (R-ME).
El Paso Posts 41% EPS Jump, Denies CA Allegations
Marking the first quarter of record since the completion of its merger with The Coastal Corp. in January, El Paso Corp. reported that its diluted adjusted earnings rose 41% to $0.96 per share, compared with the company’s first quarter 2000 level of $0.68 per share. The strong results were led by the closure of its merger as well as a strong contribution from its merchant energy group.
El Paso Posts 41% EPS Jump, Denies CA Allegations
Marking the first quarter of record since the completion of its merger with The Coastal Corp. in January, El Paso Corp. reported that its diluted adjusted earnings rose 41% to $0.96 per share, compared with the company’s first quarter 2000 level of $0.68 per share. The strong results were led by the closure of its merger as well as a strong contribution from its merchant energy group.
Coastal Earnings Jump 40%
Coastal’s earnings for the third quarter were up 40% over thesame period in 1999, boosted by higher gas production volumes andhigher commodity prices in its oil refining and marketingbusinesses. Earnings for the quarter were $144.8 million, or 65cents per share, compared with $102.1 million, or 47 cents a sharea year ago. Excluding merger related items, earnings for theHouston-based company were $146.9 million, or 66 cents per share.First Call/Thomson Financial had predicted 60 cents/share.
Financial Briefs
UtiliCorp United reported a 75% jump in earnings per share forthe third quarter led by strong results from its Aquila Energysubsidiary and an increased contribution from internationalbusinesses. “The energy merchant business continues to be strong,”said CEO Richard C. Green. “Aquila’s performance and the continuedunleashing of value in our international businesses resulting fromthe initial contribution of our recent electric network acquisitionin Canada and the successful initial public offering of our telecombusiness in Australia enabled us to exceed last year’s thirdquarter results.”
Futures Spike Propels Cash Well Above Index Levels
It sure didn’t take long for the August aftermarket to jump wellabove indexes, one market observer said. Boosted by screen strengthand the anticipation of closer to normal summer weather eventuallyinvading key northern market areas, all points except Malinregistered double-digit gains Wednesday.
Sempra Reports 34% Jump in Second Quarter Earnings
Citing increased profits from energy trading and internationalprojects, San Diego-based Sempra Energy Thursday reported unauditedconsolidated net income of $110 million, a 34% increase overearnings in last year’s second quarter. Second-quarter revenueswere $1.5 billion, or equal to the revenues in the same period lastyear.
Big Futures Jump Likely to Give Boost to Cash
The cash market was very much a mixed bag Monday, with largerebounds in the West arrayed against small price movements up anddown (but more down than up) in the East. However, because thegreat majority of the screen’s dazzling display of strengthoccurred following the close of cash business, sources found reasonto expect a bullish market in physical gas today even without muchweather-related support.