Profit

Despite a round of midday profit taking, the natural gas futuresmarket was able to eke out a modest advance amid continued see-sawtrading activity yesterday. The September contract led all othermonths, posting a 1.9-cent gain en route to a $2.727 close.Estimated volume was robust with 86,261 contracts changing hands.

For the first time in the last eight quarters, Chesapeake EnergyCorp. of Oklahoma City, OK, turned a profit. The improvement was inspite of decreased production.

Light profit-taking that began in Monday’s Access tradingsession, continued yesterday at the New York Mercantile Exchange.Locals were seen as aggressive sellers, unloading positions aheadof today’s storage report. The July contract finished at $2.393,down 4.9 cents for the day.

Enron Corp. reported a 16% increase in 1998 earnings per dilutedshare, led by wholesale energy marketing operations. Earnings roseto $2.01/share from $1.74 in 1997. Corresponding net incomeincreased 36% to $698 million from $515 million during the year.The comparisons are before non-recurring items and last year’s gainof $61 million, related to the sale of a 7% interest in EnronEnergy Services.

PG&E Corp. suffered an 11% net earnings loss for the thirdquarter, reporting earnings of 55 cents per share ($210 million),compared with 62 cents per share ($257 million) for 3Q97. Thecompany attributed the majority of the decline to utilitysubsidiary Pacific Gas and Electric’s pending 1999 general ratecase and a change in the way revenues are recorded as a result ofthe deregulation of California’s electric industry. The utilitysubsidiary is earning below its authorized rate of return, a trendthat is expected to continue until the rate case is resolved earlynext year.