Its close-to-defunct risk management business, plus its former communications business and litigation costs, tacked on another large loss for Dynegy Inc.’s second quarter. The company Friday reported a net loss of $290 million, or $1.00 per diluted share, $240 million of which were connected with its former businesses.
Reduction
Articles from Reduction
Dynegy’s Independent Re-Audit Expected in March
Dynegy Inc.’s amended Form 10-K, filed with the Securities and Exchange Commission (SEC) on Feb. 14, resulted in an $11 million reduction to 2001’s net income and a $13 million increase to 2002 net income, which were both reported in January (see Daily GPI, Feb. 3).
Shell, Marathon to Sell Off Non-Core Assets in ’03 in Debt Reduction Efforts
Royal Dutch/Shell Group and Marathon Oil Corp. both announced plans Thursday to continue to sell off non-core assets in 2003. For Shell, the sales list includes a network of U.S.-based crude oil product pipelines. Marathon, meanwhile, plans to dispose of $400 million in assets while pumping up the spending in its exploration and production (E&P) budget domestically and internationally.
Shell, Marathon to Sell Off Non-Core Assets in ’03 in Debt Reduction Efforts
Royal Dutch/Shell Group and Marathon Oil Corp. both announced plans Thursday to continue to sell off non-core assets in 2003. For Shell, the sales list includes a network of U.S.-based crude oil product pipelines. Marathon, meanwhile, plans to dispose of $400 million in assets while pumping up the spending in its exploration and production (E&P) budget domestically and internationally.
Asset Sales Enable Magnum Hunter to Redeem Notes Due in ’07
Focused on efforts to continue its debt load reduction, independent Magnum Hunter Resources Inc. on Thursday said that next month it plans to redeem $30 million of its outstanding 10% senior notes that won’t come due until 2007.
Moody’s Puts NUI’s Debt Securities Under Review for Possible Downgrade
Sparked by the company’s earnings guidance reduction last week, Moody’s Investor’s Service said Monday it has placed the debt ratings of NUI Utilities, Inc. (“NUI”) and that of its parent holding company, NUI Corp. under review for possible downgrade. The review affects approximately $260 million and $60 million of NUI Utilities’ and NUI Corp.’s debt securities, respectively.
Drilling Consolidation Holds Costs Higher in Current Slump
Despite the 35% reduction in domestic drilling activity, drilling service costs have fallen only 15-20% so far because of consolidation in the industry. Today’s drilling and oil field service prices are 20-200% higher than during the same rig utilization in the last industry downturn, analysts at Raymond James & Associates said in an equity research note.
Drilling Consolidation Holds Costs Higher in Current Slump
Despite the 35% reduction in domestic drilling activity, drilling service costs have fallen only 15-20% so far because of consolidation in the industry. Today’s drilling and oil field service prices are 20-200% higher than during the same rig utilization in the last industry downturn, analysts at Raymond James & Associates said in an equity research note.
Laclede Expects 35% Customer Rate Cut This Winter
Based on normal weather, natural gas customers served by St. Louis-based Laclede Gas will see a 35% reduction in their winter heating bills, the company estimates. Laclede, with an estimated 633,000 customers in St. Louis and eastern Missouri, bases its cost estimates on the recent wholesale price projections for the winter period from November through March 2002.
Industry Briefs
Niagara Mohawk Power Corp. expects its residential gas customers will experience a reduction of about 20% in their heating bills during the coming winter compared with last winter, assuming comparable weather and barring unforeseen circumstances in the market. “Market supply-and-demand forces have brought wholesale costs down from last year’s record-high levels closer to the prices of the previous few years, and a freeze on Niagara Mohawk’s delivery charges remains in effect,” said Joseph T. Ash, vice president of gas delivery. As part of its proposed merger with National Grid plc, a freeze on Niagara Mohawk’s gas delivery charges would be extended by a year to August 2004. Based on current wholesale commodity projections, a typical residential customer who paid about $900 in gas heating costs during the last November through April heating season should pay about $720 for the same amount of gas this winter. For an entire year’s consumption from Nov. 1 to Oct. 31, a typical customer’s total gas bill is projected to decline to about $975 in 2001-2002 from about $1,175 in the current year. Niagara Mohawk delivers natural gas to more than 540,000 customers over 4,500 square miles of eastern, central and northern New York.