Profit

Cost cutting as a result of reduced drilling led Forest Oil Corp. to swing to a 2Q2009 profit of $37.1 million (36 cents/share) after posting a loss of $68 million (minus 78 cents/share) during 2Q2008. While the company said it has reduced its drilling investment, management said for the remainder of the year the Denver-based company will focus its resources on its promising acreage in the Haynesville Shale and the Granite Wash.

The plummeting North American natural gas-directed drilling rig count contributed greatly to a more than halving of profit at Schlumberger Ltd., the world’s largest oilfield services company. CEO Andrew Gould told financial analysts there is little hope for recovery this year. The leading executives at rival firms Halliburton and Nabors Industries largely agreed.

The plummeting North American natural gas-directed drilling rig count contributed greatly to a more than halving of profit at Schlumberger Ltd., the world’s largest oilfield services company. CEO Andrew Gould told financial analysts there is little hope for recovery this year.

Natural gas futures bulls tried to capitalize on Thursday’s momentum in early Friday trade by pushing the July contract north of $4.100, but profit-takers had other ideas as the prompt-month contract reversed course in a hurry to close the day’s regular session at $3.835, down 12.2 cents from Thursday’s finish.

For those looking for even a small piece of good news in the midst of economic decline, the small profit posted by Chevron Corp. in the final period of 2008 was some relief. Like ExxonMobil Corp. (see related story), Chevron’s natural gas and oil volumes fell because of the continuing impact of hurricanes Gustav and Ike.

With some key uncertainties now resolved in its utilities and commodities businesses, San Diego-based Sempra Energy is raising its confidence level and profit guidance for the rest of the year, CEO Donald Felsinger told financial analysts during an earnings conference call last Thursday. Still, regulatory, economic and contractual challenges lie ahead for interstate pipeline/storage plays and Sempra’s growing liquefied natural gas (LNG) terminal assets.

With some key uncertainties now resolved in its utilities and commodities businesses, San Diego-based Sempra Energy is raising its confidence level and profit guidance for the rest of the year, CEO Donald Felsinger told financial analysts during an earnings conference call Thursday.

Spectra Energy third quarter profit was down sharply on discontinued operations, but when special items are excluded net income shows a nearly 32% gain from the year-ago period on strong results in the company’s gas pipeline and storage businesses.

Spectra Energy third quarter profit was down sharply on discontinued operations, but when special items are excluded net income shows a nearly 32% gain from the year-ago period on strong results in the company’s gas pipeline and storage businesses.