Reaffirms

Xcel Energy CFO Richard Kelly told analysts Thursday that the company is confident its merchant power subsidiary, NRG Energy, will emerge from bankruptcy this fall, probably in late November. He said it was the company’s top priority to make that happen.

Taking into account a charge related to new accounting changes, Duke Energy reported first quarter net income of $225 million (25 cents per share), compared to $382 million (48 cents per share) in first quarter 2002. Results for first quarter 2003 included a $162 million (18 cents per share) after-tax charge for the cumulative effect of previously announced accounting changes.

Taking into account a charge related to new accounting changes, Duke Energy reported first quarter net income of $225 million (25 cents per share), compared to $382 million (48 cents per share) in first quarter 2002. Results for first quarter 2003 included a $162 million (18 cents per share) after-tax charge for the cumulative effect of previously announced accounting changes.

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

Kinder Morgan Inc. (KMI) on Tuesday completed a plan begun in early August with affiliate Kinder Morgan Energy Partners LP (KMP) to issue a total of $1.84 million of debt and equity financing. KMI completed $750 million in 10-year, 6.3% notes, while KMP issued $343 million of new equity capital, $500 million of 31-year 7.3% debt and $250 million of five-year 5.35% debt. The debt and equity offering proceeds will be used to pay down both of the companies’ commercial paper.

Kansas City, MO-based Aquila Inc. responded to Thursday’s 52% drop in its share price by restating its confidence in its liquidity position, credit standing and its preparedness for any sudden collateral requirements in the event of a credit ratings downgrade to junk status.

Kansas City, MO-based Aquila Inc. responded to last Thursday’s 52% drop in its share price by restating its confidence in its liquidity position, credit standing and its preparedness for any sudden collateral requirements in the event of a credit ratings downgrade to junk status. Aquila currently is rated only one notch above junk status by Moody’s Investors Service and Fitch Ratings and two notches above junk by Standard and Poor’s.

El Paso Corp.’s accounting for results from restructured power contracts was in the headlines again Tuesday in the Wall Street Journal and The New York Times, and investors avoided EP shares like the plague in reaction to the news. El Paso’s stock plummeted 23% to $10.40, only a day after UBS Warburg raised its stock rating on the company to “Strong Buy.” Meanwhile, Standard and Poor’s (S&P) said it found nothing new in the newspaper reports and reaffirmed El Paso’s “BBB+/Stable/A2” credit ratings, despite the sharp downturn in its stock and in investor sentiment.