Profit

For the second day in a row, the natural gas futures market opened higher but fell lower late in the session as traders elected to take profits on the hunch that all the bullish news available has already been factored into prices. By virtue of losses Friday, Monday, and Tuesday, the November contract becomes the first prompt month since September to notch a string of three down days. It closed at $4.11, down 4.7 cents for the session and a whopping 31 cents beneath Monday’s 18-month high at $4.42.

Marking the second time the company has reduced its earnings guidance in the last four months, NUI Corp. said Friday it anticipates fiscal 2002 earnings from continuing operations for the year that ended Sept. 30 to be between $0.85 to $0.95 per share, excluding the effect of the change in accounting, severance and discontinued items. In July, the company lowered its guidance to $1.50 to $1.60 per share from its previous guidance of $1.80 – $1.90 per share (see Daily GPI, July 17).

A 69 Bcf weekly storage injection and a rapidly strengthening tropical storm rumbling toward the Gulf of Mexico were enough to send natural gas futures higher Thursday morning as traders loaded up on long positions. The October contract gapped higher for the second session in a row and peaked at $3.97 moments after traders learned that the storage increase last week fell slightly short of expectations, the prior week’s injection and the injection reported during the same week last year. At 11 a.m. EDT, the October contract was 11.3 cents higher on the day at $3.90. It closed 6.9 cents higher at $3.856.

Despite the economic downturn and considerably milder weather, NiSource Inc. posted net income of $66.9 million ($0.32 per diluted share) for the fourth quarter of 2001, compared to a net income loss of $4.2 million ($0.02 loss per diluted share) for the equivalent quarter in 2000. The company also had a strong full year, turning a loss in 2000 into a sizeable gain in 2001. The company reported $216.2 million ($1.03 per diluted share) in 2001 net income, compared to $150.9 million ($1.12 per diluted share) in 2000.

Despite the economic downturn and considerably milder weather, NiSource Inc. posted net income of $66.9 million ($0.32 per diluted share) for the fourth quarter of 2001, compared to a net income loss of $4.2 million ($0.02 loss per diluted share) for the equivalent quarter in 2000. The company also had a strong full year, turning a loss in 2000 into a sizeable gain in 2001. The company reported $216.2 million ($1.03 per diluted share) in 2001 net income, compared to $150.9 million ($1.12 per diluted share) in 2000.

Murphy Oil shares plummeted 7% ($5.70) Friday to $75.45 after the company issued a profit warning. Murphy was among Wall Street’s 10 biggest losers, while most other energy stocks showed small losses or gains. The El Dorado, AR-based company said after the market closed on Thursday that third-quarter earnings will fall short of analysts’ expectations of $1.12 and would probably be between $0.80 to $1 per share.

Following years of planning, Eastern North Carolina Natural Gas Co. (ENCNG), a non-profit partnership between the Albemarle Pamlico Economic Development Corporation (APEC) and Raleigh, NC-based Progress Energy, reported that their long-awaited gas supply project to residential, commercial and industrial consumers across a 14-county section of eastern North Carolina is under way.

Following years of planning, Eastern North Carolina Natural Gas Co. (ENCNG), a non-profit partnership between the Albemarle Pamlico Economic Development Corporation (APEC) and Raleigh, NC-based Progress Energy, reported that their long-awaited gas supply project to residential, commercial and industrial consumers across a 14-county section of eastern North Carolina is under way.

Avista Corp., rocked by early cold weather and increased loads that reduced profit within its utilities division, now expects to report better-than-expected earnings for the fourth quarter, driven by its non-regulated energy trading arm, Avista Energy. The Spokane, WA-based company’s consolidated fourth quarter diluted earnings will exceed $.50 per share, based on results form the first two months of the quarter. The earnings would be well above the consensus figure of $.09, with earnings ranging between $.05 and $.17, according to seven analysts surveyed by First Call/Thomson Financial. The improved performance by the energy arm offset predicted losses within Avista Utilities, which “continues to be affected by cold weather that has increased loads.” The increased loads have led to higher purchased power costs that are not currently being recovered from customers or included in power cost deferrals. Ironically, Avista’s second quarter earnings, reported in June, were driven down by Avista Energy because of what the company called errors in its wholesale trading decisions made a few months earlier (see NGI, June 26). However, company officials predicted then that the energy arm would recover and lead the way toward better economic health for the entire company by the end of this year. Despite its comeback, there has been fallout within the company, with CEO Tom Matthews resigning in early November. Also last month, a federal investigation was launched into the trading practices of the company. Federal investigators have begun looking into possible energy futures trading rule violations that may have occurred two years ago at a Houston subsidiary.