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In a story that ran in the Oct. 25 edition of NGI’s Daily Gas Price Index, titled “El Paso Posts Solid Earnings, But Special Charges Lower Profits,” some comments were incorrectly attributed to El Paso Merchant Energy Group President Ralph Eads III. The comments were made by Greg Jenkins, CEO of El Paso Global Networks. The comments also contained some inaccuracies. Jenkins said, “The [global network business] has deteriorated much more over the course of the past several weeks and few months. The regulatory environment in our judgement is viewed unfavorably against real competition, and today the market fundamentals are very weak. Consequently we are reducing our focus [on telecommunications]. Our focus next year is going to be on those activities where that value is recognizable, that being the Texas market in particular, and maximizing returns on those assets.” Jenkins’ was not referring to the merchant generation business, and El Paso Corp. has reaffirmed its confidence in merchant generation and its position in that market. NGI regrets the errors.

Among the sea of red ink flooding the U.S. economy’s third-quarter earnings reports, San Jose, CA-based Calpine Corp., the merchant power plant developer/operator, Thursday stood out as a glaring exception, reporting a 102% increase in net income for the quarter ($320.8 million versus $158.5 million for the same quarter in 2000) and a 292% increase in quarterly revenues ($2.9 billion versus $744.8 million for year-earlier period). Diluted earnings/share were up 80% to 88 cents for the quarter.

Led by 17% gas production growth, higher realized gas prices and a solid marketing and trading performance, El Paso Corp. reported a 42% increase in earnings before special items to $0.78/share compared with $0.55 in the third quarter of 2000. Adjusted net income rose 43% to $405 million. However, its net income, including special charges, fell 28% to $202 million.

Led by 17% gas production growth, higher realized gas prices and a solid marketing and trading performance, El Paso Corp. reported a 42% increase in earnings before special items to $0.78/share compared with $0.55 in the third quarter of 2000. Adjusted net income rose 43% to $405 million. However, its net income, including special charges, fell 28% to $202 million.

California regulators may be scratching their heads about what to do with gas purchasing incentives for the state’s major utilities following Southern California Gas Co.’s filing that claims its purchases over a 12-month period ending last June were $223 million below market prices.

Barrett Resources Corp. unveiled its second quarter 2001 results Wednesday, which showed a strong increase over the equivalent time frame from 2000 due primarily to its gas business in the Rocky Mountains. The company reported net income of $55.1 million ($1.61 per diluted share) for the quarter that ended June 30, compared to a net loss of $4 million ($0.12 per diluted share) during the second quarter 2000.

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.

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.

OGE Energy Corp., parent company of Oklahoma Gas and Electric Co. and Enogex Inc., reported a substantial first quarter loss on Monday, blaming the reduction on unfavorable price margins and “strong downward pressure on fractionation spreads.” OGE posted a loss of $15 million, or 19 cents a share, compared with a profit last year of $1.06 billion or one cent a share.