Natural gas-focused Questar Corp.’s quarterly earnings were up 42% on stronger production results and higher realized prices for gas, oil and natural gas liquids (NGL), as well as increased gas gathering and processing volumes and margins. However, the company warned that the recent decline in gas prices will impact 2006 earnings.
Liquids
Articles from Liquids
Oneok’s 3Q Earnings Soar with NGL Purchase
The acquisition of Koch’s natural gas liquids (NGL) business in July, coupled with higher prices, volumes and margins, lifted Tulsa-based Oneok Inc.’s third quarter earnings up significantly, with net income soaring to $184.5 million ($1.70/share) from $20.8 million (19 cents) in 3Q2004.
Citing Active M&A History, Moody’s Downgrades Oneok’s Debt
After completing its review of Oneok’s $1.35 billion purchase of Koch’s natural gas liquids (NGL) assets, Moody’s Investors Service downgraded the ratings of Oneok’s debt to Baa2 from Baa1. Moody’s said that $2 billion of debt securities are affected. The rating outlook is stable.
EnCana’s Expansive Gas Storage Business Up for Sale
EnCana Corp., which at one time indicated that it wanted to become a leading North American natural gas storage operator, said Monday that following a “strategic review” by the board of directors, it will sell nearly all of its gas storage business — 174 Bcf of capacity at five facilities in Alberta, California and Oklahoma — through a competitive auction or an initial public offering (IPO).
USGS Estimates 37.5 Tcf of Recoverable Gas on Alaska’s Central North Slope
A new U.S. Geological Survey (USGS) assessment estimates that there is about 37.5 Tcf of undiscovered but technically recoverable natural gas resources, 478 million bbl of natural gas liquids and 4 billion bbl of oil in the central part of the Alaska North Slope and the adjacent state offshore area.
USGS Estimates 37.5 Tcf of Recoverable Gas on Alaska’s Central North Slope
A new U.S. Geological Survey (USGS) assessment estimates that there is about 37.5 Tcf of undiscovered but technically recoverable natural gas resources, 478 million bbl of natural gas liquids and 4 billion bbl of oil in the central part of the Alaska North Slope and the adjacent state offshore area.
Industry Briefs
By hedging additional natural gas, oil and natural gas liquids (NGL) production for 2005, Energen Corp. is raising its earnings guidance by 15 cents to a range of $4.25-$4.45/share in 2005. The Birmingham, AL-based company hedged an additional 0.9 Bcf of its 2005 gas production at a New York Mercantile Exchange-equivalent price of $6.56/Mcf, 0.4 million bbl of its oil production at a Nymex-equivalent price of $43.825/bbl, and 20.2 million gallons of its NGL production at an average price of 62.8 cents/gallon. Included in the company’s 2005 earnings guidance is an estimated 3 cents/diluted share from an unidentified $200 million acquisition in 4Q2004. The company’s 2005 guidance also assumes that prices applicable to Energen’s unhedged production will average $6/Mcf for gas, $32/bbl for oil, and 53 cents/gallon for NGLs.
Energen Raises ’05 Earnings Guidance on New Hedges
By hedging additional natural gas, oil and natural gas liquids (NGL) production for 2005, Energen Corp. said Wednesday it is raising its earnings guidance by 15 cents to a range of $4.25-$4.45/share in 2005.
Questar Rides Increased Production, Prices to Strong 2Q Earnings
Led by an 18% increase in nonregulated gas, oil and natural gas liquids production, a 14% rise in realized natural gas prices, and an 18% increase in nonregulated gas gathering volumes, Questar Corp. posted 2Q2004 net income of $42.6 million, or $0.50 per diluted share, compared with $20.3 million, or $0.24 per diluted share, in the comparable 2003 period.
Questar Rides Increased Production, Prices to Strong 2Q Earnings
Led by an 18% increase in nonregulated gas, oil and natural gas liquids production, a 14% rise in realized natural gas prices, and an 18% increase in nonregulated gas gathering volumes, Questar Corp. posted 2Q2004 net income of $42.6 million, or $0.50 per diluted share, compared with $20.3 million, or $0.24 per diluted share, in the comparable 2003 period.