Producer

With the company’s NRG Energy independent power producer unit leading the way, Xcel Energy Inc. is raising its earnings estimates for this year to $2.30 per share, up from previous estimates of $2.20 per share. Meanwhile, executives at the company Tuesday sought to allay any possible concerns about Xcel’s supply position heading into the summer months.

Marathon Oil Co., which completed its acquisition of gasproducer Pennaco Energy Inc. earlier this month, expects toincrease its oil and gas production another 3% this year throughexploration and possible acquisitions, said CEO Clarence Cazalot.However, Cazalot was coy about whether parent company USX-MarathonGroup would spin off or sell its growing energy unit this year.

Exxon Mobil Corp. was the top Texas natural gas producer in2000, averaging 858,344 Mcf/d, or about 6.5% of the total stateproduction, according to the Railroad Commission of Texas. ConocoInc. was second, averaging 703,921 Mcf/d, or 5.4% of all gasproduced in Texas last year. Other companies rounding out the topten leader board were Coastal Oil & Gas Corp., 651,958 Mcf/d;RME Petroleum Co., 498,837 Mcf/d; EOG Resources Inc., 438,688Mcf/d; Mitchell Energy & Development Co. LP, 367,014 Mcf/d;Texaco E&P Inc., 335,770 Mcf/d; Chevron U.S.A. Inc., 327,941Mcf/d; Phillips Petroleum Co., 319,663 Mcf/d; and Shell WesternE&P Inc., 302,395 Mcf/d.

International power producer AES Corp. announced a plan to scarfup the assets of Thermo Ecotek Corp., a subsidiary of ThermoElectron Corp. of Waltham, MA, for $195 million in cash, plusadditional closing adjustments that currently amount to another $15million. Thermo Ecotek builds and operates power plants and ownsgas storage assets. Its portfolio includes 516 MW of gas-fired,biomass-fired (agricultural and wood waste), and coal-fired powerplants in the United States, the Czech Republic, and Germany, aswell as a natural gas storage project in the United State and over1,250 MW of advanced development power projects in the UnitedStates. The transaction is likely close during the third quarter.

Enron Energy Services and Owens-Illinois, Inc., a leadingproducer of glass and plastics packaging, have announced a 10-yearenergy management agreement covering 53 Owens-Illinois (O-I)manufacturing facilities in 20 states and energy purchases inexcess of $2 billion.

Energy Search Inc. has finalized an agreement with SouthernProducer Services LP, a subsidiary of Southern Energy Inc., toextend the funding of its capital expenditure program for 2001. Aspart of the agreement, Southern pre-approved 60 wells to be funded.Energy Search, based in Knoxville, TN, plans to drill 75 wells nextyear for about $11.5 million, primarily natural gas reserves in theAppalachian Basin. Energy Search CEO Charles P. Torrey said theagreement with Southern allows the company to “expand and expediteour aggressive drilling program.” He added that Southern had been”vital” to the company’s drilling schedule, and said he consideredSouthern’s commitment “a validation of our business developmentplan for the coming year.”

With Bighorn Gas Gathering LLC turning a year old this month,the joint-venture which consists of CMS Energy affiliates andNorthern Border Partners L.P. continues to sign up new customersfor its Powder River Basin natural gas gathering system, upping itstotal number of producers to six with the newly announced additionof Prima Oil and Gas, a subsidiary of Prima Energy.

In its second bite this year at Canadian reserves, San Jose,CA-based independent power producer Calpine Corp. announced Mondayit will make a cash offer to acquire TriGas Exploration Inc.,Calgary, Alberta, for C$156 million. The two companies jointlyannounced they have an agreement that has the “unanimous support”of both companies’ boards.

Congress already has two measures pending that would help tomoderate the effects of the high natural gas bills expected thiswinter for consumers – the Clinton administration’s package ofenergy efficiency measures and short-term tax incentives forproducers, Energy Secretary Bill Richardson said last week.