Reporting

Chevron Corp. on Friday joined other top oil majors in reporting colossal quarterly earnings, announcing profit of $4 billion ($1.80/share) for 1Q2006, two cents ahead of Wall Street estimates and up from year-ago profit of $2.68 billion ($1.28/share). Total revenue, including sales and income from equity affiliates, reached $54.62 billion, up from $41.6 billion. Sales jumped 32% to $53.52 billion, well ahead of the $40.49 billion reported in 1Q2005.

After reporting Thursday that the Amerada Hess-operated Sea Robin Processing Plant had resumed operations again that afternoon for the first time since shutting down during the passage of Hurricane Rita last fall (see Daily GPI, March 24), Sea Robin Pipeline said the plant had been shut down again Friday morning until further notice.

A former Arthur Andersen LLP accountant Monday testified that Enron Corp. tried to avoid reporting millions of dollars in losses within its water subsidiary by announcing in mid-2001 that it would invest $1 billion in the failing business. However, no evidence of its growth strategy was ever found, John R. Sult told jurors.

Despite last year’s harrowing hurricane season, W&T Offshore Inc. had its best financial year ever in 2005, reporting a 31.5% increase in net income for the fourth quarter and 26% increase for the year. While production volumes took a hit due to hurricane damage, the company benefited from significantly higher commodity prices.

Citing forecasts of single-digit system weighted temperatures and below-zero lows at most reporting stations in its market area, Northern Natural Gas issued a System Overrun Limitation that will take effect Thursday for all market-area zones (ABC, D and E/F). It set System Management Services percentages (imbalance tolerances) of 25% for all zones.

Reporting that recent takes have been significantly below nominations, El Paso said it is experiencing “excessively high linepack” and that its Washington Ranch storage facility is injecting at maximum capacity. Urging shippers to bring their supplies into balance with their takes, the pipeline said that if the situation fails to improve, it may need to declare a Strained Operating Condition.

Central New York Oil and Gas Co. LLC (CNYOG), an Inergy LP subsidiary, closed the nonbinding open season for the Stagecoach Phase II expansion, reporting a “strong response.” Interest expressed exceeded 200% of the available field inventory capacity of 13 Bcf and 300% of available deliverability. Those expressing interest included local distribution companies, gas-fired generators and third-party marketers, many of whom do not participate in the existing storage field, CNYOG said.

Natural gas output in the Gulf of Mexico remained at around 20% all week, with the Minerals Management Service (MMS) reporting Friday production outages equalling 79.4% — with shut-in production totaling 7.94 Bcf/d. The Sabine Pipe Line LLC’s force majeure also continued in effect for the Henry Hub gas delivery point, but some progress was reported.

With 54 producers reporting, the Minerals Management Service (MMS) said Friday that shut-in natural gas production in the Gulf of Mexico now totals 3.384 Bcf/d, down from 3.411 Bcf/d reported a day earlier. The shut-in gas is equivalent to 33.84% of the daily gas production in the Gulf, currently 10 Bcf/d.