Liquids

Denver-based Tom Brown Inc. scored well earnings-wise in the second quarter, but production-wise, the independent’s natural gas numbers were off about 8% compared with a year ago. Oil and gas production overall this year is forecast to be down from 2002 levels, but recent drilling success in the Rocky Mountains and a new acquisition should result in 14% growth from the first quarter through the end of the year, management said Friday.

ConocoPhillips’ upstream unit, comprised of crude oil, natural gas and natural gas liquids production on a boe/d basis, is expected to be near first quarter levels, the company said last week in an interim second quarter report. While the results benefited from a full quarter’s output from Venezuela facilities and new wells coming online in China, the gains were offset by normal seasonal declines in Alaska, Norway and the United Kingdom.

ConocoPhillips’ upstream unit, comprised of crude oil, natural gas and natural gas liquids production on a boe/d basis, is expected to be near first quarter levels, the company said Wednesday in an interim report. While the results benefited from a full quarter’s output from Venezuela facilities and new wells coming online in China, the gains were offset by normal seasonal declines in Alaska, Norway and the United Kingdom.

Buoyed largely by “significant asset acquisitions” completed during the past year, Houston-based El Paso Energy Partners LP reported last week a 77% jump in net income for the third quarter over a year ago. The company said approximately $2.2 million, or five cents per unit, had been shaved from its quarterly earnings due to disruptions caused by Hurricane Isadore and a loss associated with a natural gas hedging transaction.

Matagorda Offshore Pipeline System completed a pigging operation that caused a shutdown of the pipeline last week due to excess liquids (see Daily GPI, Oct. 23). The outage affected flows of about 115 MMcf/d. MOPS delivery nominations were being accepted again Friday for intraday scheduling.

Due to operational problems with high liquids on the Matagorda Offshore Pipeline System (MOPS) offshore Texas, all production on MOPS was shut in Tuesday until further notice. The action affected 50 MMcf/d into Florida Gas Transmission at their Refugio, TX interconnect and also affected unspecified amounts in force majeure declarations at MOPS’ MidCon Texas Pipeline and Koch Gateway (Gulf South) McFaddin delivery points.

Houston-based Nuevo Energy Co. on Wednesday announced the acquisition of 100 Bcfe of proved reserves — 97% natural gas and associated liquids — for two million shares of its common stock, $62 million in cash and the assumption of $20 million of debt from Athanor Resources Inc., a private company funded primarily by Yorktown Energy Partners. The reserves are located entirely in Terrell County, TX.

A fire that resulted from a rupture on Williams’ Mid-America (liquids) Pipeline in a rural area north of Kansas City, MO Tuesday was brought under control and was essentially out by the end of the day, company officials said.

Strong energy demand and numerous “fee-based” service transactions led to significant financial earnings growth for Kinder Morgan Inc. (KMI) and solid distribution growth for Kinder Morgan Energy Partners (KMP). CEO Richard D. Kinder forecasts 40% growth this year in earnings per share for KMI and raised the distribution targets set for KMP, which already hit its year-end distribution target in the first quarter.