Raised

Sen Pete Domenici of New Mexico and Rep. W.J. Billy Tauzin of Louisiana, the chief Republican negotiators on the energy bill, said Friday that an agreement had been reached on the disputed issues in the tax package that allows them to make the text of the bill public on Saturday, and sets the stage for the measure to possibly clear both houses before lawmakers adjourn later this month.

Questar Corp. raised its earnings guidance for the year and reported a 23% increase in net income to $28.7 million, or 34/cents per diluted share, for third-quarter on much higher realized gas prices.

Lehman Brothers raised its earnings per share and cash flow estimates on a group of 16 mid-cap oil and gas production companies by 17% and 7%, respectively, because of higher Nymex gas and oil futures prices and higher Lehman Brothers spot price forecasts for the second quarter and the full year.

Lehman Brothers raised its earnings per share and cash flow estimates on a group of 16 mid-cap oil and gas production companies by 17% and 7%, respectively, because of higher Nymex gas and oil futures prices and higher Lehman Brothers spot price forecasts for the second quarter and the full year.

In the wake of questions raised by FERC last month, El Paso Corp. last week sought to assure the Commission that the effect of the recent note sales of its two principal pipeline subsidiaries, Southern Natural Gas (Southern) and ANR Pipeline, will be to “further strengthen” the companies, increase their capital expenditures and lighten their debt loads, while keeping their capital structures for ratemaking at the same level.

In the wake of questions raised by FERC last month, El Paso Corp. last week sought to assure the Commission that the effect of the recent note sales of its two principal pipeline subsidiaries, Southern Natural Gas (Southern) and ANR Pipeline, will be to “further strengthen” the companies, increase their capital expenditures and lighten their debt loads, while keeping their capital structures for ratemaking at the same level.

TransColorado has sharply raised the proposed size of its gas pipeline expansion project to an incremental increase of 600,000 Dth/d from the previously announced 150,000 Dth/d (see Daily GPI, Jan. 22).

El Paso Corp. was in the unenviable position of being the most traded common stock on the New York Stock Exchange Wednesday because investors were continuing a sell-off. The company’s stock dropped a little over 22% to $3.65. The market overall was down on war fears, and other energy companies took a hit, but not in the same league as El Paso.

Consultants at Friedman Billings Ramsey (FBR) have raised their natural gas price forecasts for 2003, 2004 and 2005 based on the conclusion that total natural gas supply will fall about 3.6 Bcf/d short of demand by 2005. FBR concludes that amount of demand will have to be priced out of the market, and the industrial sector will suffer the most.