Quarter

Clobbered by the transfer and sale of various merchant energy assets in the fourth quarter, San Francisco-based PG&E Corp. reported a loss of $874 million, or $2.36/diluted share, for 2002, compared to earnings of $1.099 billion, or $3.02/diluted share, in 2001. The merchant energy unit, PG&E National Energy Group (NEG), booked a $3.4 billion loss in 2002. Without various accounting charges and so-called “headroom” for excess power generation revenues over cost, all lines of business on an operating basis showed a profit, but at lower levels than in 2001.

Houston-based Plains Exploration & Production Co. said it will be adding exploration expertise and properties weighted toward natural gas with its new agreement to acquire 3TEC Energy Corp. Plains said it has a definitive agreement to acquire 3TEC for a combination of cash and stock valued at $432 million.

Williams said it cut about $600 million of debt in the fourth quarter to a total of $14 billion and has current liquidity of $1.6 billion. In a brief preview of its year-end financials last Thursday, the company said it expects recurring operating earnings to fall within its previous guidance for 2002 of $1.4 billion to $1.5 billion from its gas pipeline, exploration and production, and midstream gas and liquids businesses, along with its investment in Williams Energy Partners

Williams said it cut about $600 million of debt in the fourth quarter to a total of $14 billion, has current liquidity of $1.6 billion and expects recurring operating earnings to fall within its previous guidance for 2002 of $1.4 billion to $1.5 billion from its gas pipeline, exploration and production, and midstream gas and liquids businesses, along with its investment in Williams Energy Partners

Spikes of a quarter or more were common at eastern points Thursday morning, as the cold weather that had failed to avert general softness on Wednesday recovered its price-supportive powers in a big way. The shivering Northeast led the way with gains of up to nearly 70 cents at Transco Zone 6 non-NY, although New England points were comparatively somewhat weak. Western upticks tended to be smaller than those in the East, although such markets as Waha, Permian Basin, San Juan Basin and Sumas rose by about 30 cents or more.

Cash prices zoomed higher by a quarter or more at many eastern points Monday in what one source called a purely screen-led burst of bullishness. Western markets also rose, but by varying amounts; Rockies quotes saw gains on either side of a dime, while San Juan-Blanco joined a couple of Northeast citygates in recording the day’s biggest increases of nearly 40 cents. California, Permian/Waha and Pacific Northwest points tended to match the overall market by rising 20-30 cents.

In an article about El Paso Tennessee Pipeline Co.’s second quarter appearing in the Aug. 15 issue of Daily GPI, it was incorrectly reported that the earnings of Tennessee Pipeline were not included in the consolidated financial report of El Paso Corp. Tennessee’s earnings, including writedowns totaling $342 million related to investments in power generation assets and oil reserves in financially-troubled Argentina in the first half of the year, were include in El Paso financials.

With its share price brutalized July 19 after preliminary second quarter earnings announcements (see NGI, July 22), the corporate credit, long-term debt and preferred-stock ratings of Nicor Inc. and subsidiary Nicor Gas Co. were placed on CreditWatch with negative implications by Standard & Poor’s last Monday. The ratings service said the actions reflect problems related to the company’s 50% ownership in retail marketer Nicor Energy LLC, “possible improper behavior” within the company’s performance-based rate (PBR) program and the “immediate and severe negative market reaction to the company’s announcements.”

Dynegy Inc.’s ability to market natural gas creatively will help ChevronTexaco Corp. grow its gas presence in U.S. markets, as the major turns its long-term plan toward producing and delivering its substantial reserves, executives said Wednesday. As a 26.5% stakeholder in the Houston-based energy merchant, ChevronTexaco management, including Chairman Dave O’Reilly, made clear that Dynegy is its strategic marketing partner now and into the future.