Profits

The Fayetteville Shale, where Southwestern Energy Corp. is the dominant player, powered double-digit production growth and profits for the company in 2Q2007. Gross daily natural gas output from its Arkansas leasehold was up four-fold from a year ago, to 200 MMcf/d from 50 MMcf/d in 2Q2006.

The Fayetteville Shale, where Southwestern Energy Corp. is the dominant player, powered double-digit production growth and profits for the company in 2Q2007. Gross daily natural gas output from its Arkansas leasehold was up four-fold from a year ago, to 200 MMcf/d from 50 MMcf/d in 2Q2006.

Near-record oil prices sustained the bottom line for most of the majors in 2Q2007, but the profits didn’t translate into gains in North American natural gas production for Chevron Corp. or Royal Dutch Shell plc.

With or without adjustments for one-time, nonrecurring items, Sierra Pacific Resources last Friday reported increased profits for the third-quarter and nine-month periods this year, compared to the same periods last year. The company attributed the increase to continued customer growth at Sierra’s two Nevada utilities, Nevada Power Co. and Sierra Pacific Power Co., along with carrying charges associated with the new Chuck Lenzie Generating Station near Las Vegas, NV.

Eyeing next year with increased regulatory and market certainty, Xcel Energy late last week reported increased profits for the third quarter and the nine months ended Sept. 30, posting net income of $224 million and $471 million for the two 2006 periods, respectively, compared to $196 million and $400 million for the same two periods last year.

Eyeing next year with increased regulatory and market certainty, Xcel Energy late last week reported increased profits for the third quarter and the nine months ended Sept. 30, posting net income of $224 million and $471 million for the two 2006 periods, respectively, compared to $196 million and $400 million for the same two periods last year.

The world’s largest public oil company raked in second-quarter profits commensurate with its size. Exxon Mobil Corp., broke its own quarterly earnings record (see Daily GPI, April 28) in 2Q 2006, reporting net income of $10.36 billion, $1.72/share, an increase of $2.72 billion from the second quarter of 2005. First half net income of $18.76 billion, $3.09/share, increased by 21% versus first-half 2005.

Continuing to unload noncore assets for solid profits in preparation for its liquefied natural gas (LNG), gas storage and pipeline projects coming to fruition in the next three years, Sempra Energy announced Monday it has agreed to sell its exploration and production subsidiary, Sempra Energy Production Co. (SEPCO) to PEC Minerals LP for approximately $225 million in cash. Sempra said it expects to close the deal next momth.

With its commodities business accounting for nearly half of the profits, San Diego-based Sempra Energy Tuesday reported first quarter earnings that were up 14% over the same period last year, despite decreased or flat earnings in all of its other units, notably its two California utilities. Revenues for the first quarter were $3.3 billion, compared with $2.7 billion for the first quarter of 2005.