Profits

Marking a quarter in which it completed its $8 billion acquisition of Westcoast Energy Inc., Charlotte, NC-based Duke Energy reported that it is on track to meet 2002 financial goals through execution of its balanced energy portfolio strategy. The company posted net income of $382 million (48 cents per share) in first quarter 2002, compared with $458 million (61 cents per share) in first quarter 2001. Despite the fall-off, the company still beat a Thomson Financial/First Call estimate of 41 cents a share. The company posted earnings before interest and taxes (EBIT) of $761 million during the first quarter 2002, a steep decline from the outrageously volatile first quarter of 2001, which saw natural gas spot prices reach $10.00/Mcf and more. The company posted EBIT of $1.254 billion for the first quarter 2001.

In a story that ran in the Oct. 25 edition of NGI’s Daily Gas Price Index, titled “El Paso Posts Solid Earnings, But Special Charges Lower Profits,” some comments were incorrectly attributed to El Paso Merchant Energy Group President Ralph Eads III. The comments were made by Greg Jenkins, CEO of El Paso Global Networks. The comments also contained some inaccuracies. Jenkins said, “The [global network business] has deteriorated much more over the course of the past several weeks and few months. The regulatory environment in our judgement is viewed unfavorably against real competition, and today the market fundamentals are very weak. Consequently we are reducing our focus [on telecommunications]. Our focus next year is going to be on those activities where that value is recognizable, that being the Texas market in particular, and maximizing returns on those assets.” Jenkins’ was not referring to the merchant generation business, and El Paso Corp. has reaffirmed its confidence in merchant generation and its position in that market. NGI regrets the errors.

Led by 17% gas production growth, higher realized gas prices and a solid marketing and trading performance, El Paso Corp. reported a 42% increase in earnings before special items to $0.78/share compared with $0.55 in the third quarter of 2000. Adjusted net income rose 43% to $405 million. However, its net income, including special charges, fell 28% to $202 million.

Led by 17% gas production growth, higher realized gas prices and a solid marketing and trading performance, El Paso Corp. reported a 42% increase in earnings before special items to $0.78/share compared with $0.55 in the third quarter of 2000. Adjusted net income rose 43% to $405 million. However, its net income, including special charges, fell 28% to $202 million.

San Jose, CA-based Calpine Corp. last week unabashedly touted its successes in the past 15 months of turmoil in California’s energy markets, noting it is a litmus test for the soundness of its corporate strategy nationally. Senior officials with the merchant power plant developer/operator also declared that the state in which it sees “tremendous opportunity” is no longer in a crisis mode.

The Massachusetts Health and Educational Facilities Authority (HEFA) PowerOptions energy program reported on Wednesday that it has entered into a second major energy contract with Select Energy Inc. of Berlin, CT. The two-year agreement to supply natural gas to HEFA members extends through Oct. 1, 2003 and is expected to provide Select Energy, the retail energy marketing and services subsidiary of Northeast Utilities, with revenues of $25 million over the length of the contract.

Williams maintains a “more conservative” trading philosophy than many of its peers, Chairman Keith E. Bailey told analysts Monday, saying short term volatility in spark spreads and commodity prices have had much less impact on results since the company tends toward longer, structured transactions and is “much more fully hedged” than most.

Occidental Petroleum earnings of $466 million ($1.25 per share) beat Wall Street estimates by more than 20 cents/share. The company posted a 34% gain in net income before special items from the same period a year ago mainly on higher western gas prices and improved chemicals operations.

Occidental Petroleum earnings of $466 million ($1.25 per share) beat Wall Street estimates by more than 20 cents/share. The company posted a 34% gain in net income before special items from the same period a year ago mainly on higher western gas prices and improved chemicals operations.