Performance

Following its quarterly study, the Energy Performance Review (EPR) found that ten of the largest United States-based integrated petroleum companies reported consolidated earnings before special items totaling $11 billion for the third quarter of 2001, off one-third from the near-record $15.6 billion posted for the second quarter of the year. The mark also reflects nearly a one-third reduction from the $15.9 billion posted for the third quarter of 2000, according to the groups most recent data.

The November aftermarket started out with a hodgepodge of price movement compared with both first-of-month indexes and end-of-October numbers. Generally the West could be characterized as moderately stronger in both instances Wednesday, while eastern points tended to range from flat to a few cents lower. But there were discrepancies, primarily in the East where scattered points realized gains from gas traded for Oct. 31 flow.

Natural gas and power companies reported their “worst quarterly performance…since early 1998,” off 8% overall in the second quarter, versus a 5% gain in the Standard & Poors 500, according to a review by Credit Suisse First Boston Corp. (CSFB). Most problematic for the quarter, said analysts, were “unpredictable” political and regulatory risks, which, combined with lower gas prices, had a negative impact.

Natural gas and power companies reported their “worst quarterly performance…since early 1998,” off 8% overall in the second quarter, versus a 5% gain in the Standard & Poors 500, according to a review by Credit Suisse First Boston Corp. (CSFB). Most problematic for the quarter, said analysts, were “unpredictable” political and regulatory risks, which, combined with lower gas prices, had a negative impact.

Alberta Energy Co. Ltd. , one of North America’s largestindependents, turned in a stellar performance in 2000, doublingcash flow and recording net earnings up five-fold, at the same timeit positioned itself for future gains, adding reserves equal to458% of production.

After a positive surprise with its fourth quarter earningsperformance, Phillips Petroleum continued to astonish observerslast week, buying Tosco Corp. in a $7 billion stock transactionthat will make Phillips the second-largest refining company in theUnited States with a capacity of 1.7 MMbbl/d.

After a positive surprise with its fourth quarter earningsperformance, Phillips Petroleum continued to astonish observersover the weekend, buying Tosco Corp. in a $7 billion stocktransaction that will make Phillips the second-largest refiningcompany in the United States with a capacity of 1.7 MMbbl/d.

High energy prices and strategic actions initiated since 1997have added $1.25 per share in recurring earnings annually forOccidental Petroleum and allowed the company to pay down asignificant amount of debt this year, said CEO Ray R. Irani at thecompany’s meeting last week with financial analysts in New York.But its stock price remains in the basement at about $20/share wellbelow that of many of its peers.

High energy prices and strategic actions initiated since 1997have added $1.25 per share in recurring earnings annually forOccidental Petroleum and allowed the company to pay down asignificant amount of debt this year, said CEO Ray R. Irani at thecompany’s meeting yesterday with financial analysts in New York.But its stock price remains in the basement at about $20/share wellbelow that of many of its peers.