Realizing

As the Enron debacle continues to unfold, energy companies, financial institutions and insurance firms are realizing exactly how exposed their respective companies actually are. Since the Dynegy-Enron Corp. merger was called off early last week, companies have been eager to distance themselves, as well as confess to investors their exposure levels related to the teetering giant.

With the record levels of rig activity finally realizing an increase in natural gas supply, it is possible if the trend continues to see “a prolonged period of ‘weak’ natural gas prices” in the $2-3 range, according to Thomas Driscoll of Lehman Brothers. Supply growth, the current natural gas storage overhang, and weak demand could also lead to “lackluster” exploration and production share-price performance, the analyst warned.

With the record levels of rig activity finally realizing an increase in natural gas supply, it is possible if the trend continues to see “a prolonged period of ‘weak’ natural gas prices” in the $2-3 range, according to Thomas Driscoll of Lehman Brothers. Supply growth, the current natural gas storage overhang, and weak demand could also lead to “lackluster” exploration and production share-price performance, the analyst warned.

Xcel Energy reported that it is expecting sizeable earnings growth through the next two years while realizing increased savings from the merger that formed the company in August 2000, when Minneapolis-based Northern States Power and Denver-based New Century Energies united (see NGI, Jan. 17, 2000). Xcel Energy CEO Wayne Brunetti reiterated previous statements that the company is growing rapidly due in part to the independent electricity generating company, NRG Energy, in which Xcel holds nearly a 75% stake.

Realizing that bulls had spent all their bullets, bears hadtheir way at Nymex for the second-straight session Wednesday asthey took prices lower in several selling waves. Not even amid-morning rally could dissuade traders from continuing to takeprofits following the market’s precipitous spike to $9.65 earlierin the week. As a result, the January contract was left to slumplower for much of the afternoon, finishing 60.8 cents lower at$7.537.