Restates

The Federal Energy Regulatory Commission has defended its decision to reject a requirement by Transcontinental Gas Pipe Line that converting firm transportation (FT) customers must take and pay for service on production area supply laterals. FERC’s order on (its second) remand Wednesday (RP92-137-052) explained to a court that the decision was not inconsistent with other orders regarding Transco.

Dynegy Inc. hopes to redeem itself with a conference call Tuesday to discuss its latest Securities and Exchange Commission filings, which include Form 10-Q on third quarter earnings, as well as Form 8-K, an unaudited restatement of financials from January 1999 through December 2001.

The math still doesn’t add up at Hanover Compressor. The industry’s largest supplier of natural gas compression equipment revealed on Wednesday that for the third time this year it must restate prior financial results. After a review of prior business transactions, the company found that it incorrectly accounted for four transactions totaling revenues of $5.1 million and net income of $2 million.

The math still doesn’t add up at Hanover Compressor. The industry’s largest supplier of natural gas compression equipment revealed on Wednesday that for the third time this year it must restate prior financial results. After a review of prior business transactions, the company found that it incorrectly accounted for four transactions totaling revenues of $5.1 million and net income of $2 million.

Along with its move to restate its previously announced net income for the six-month period downward by $1.1 million, embattled Nicor Inc. said last week the Securities and Exchange Commission (SEC) opened an informal inquiry into the accounting practices of its retail joint venture with Dynegy Inc. and a natural gas supply cost plan that already is under investigation by Illinois regulators.

Looking to shore-up investor support and appease credit rating agencies, El Paso Corp. last week reiterated its restructuring commitment, along with its mission of focusing on its global liquefied natural gas (LNG) and petroleum business (see NGI, June 3).

In a 10-K filing with the Securities and Exchange Commission last week, Reliant Resources Inc. officially amended its earnings for the second and third quarters of 2001. The restatement, which was announced in early February by the company, relates to a correction in accounting treatment for a series of four structured transactions that apparently were inappropriately accounted for as cash flow hedges between May 2001 and Sept. 2001 (see Power Market Today, March 18).

Gas compression company Hanover Compressor announced last Tuesday that it is being examined by the Securities and Exchange Commission for some apparent financial miscalculations involving a joint venture in Nigeria with Royal Dutch/Shell. It is restating financial results for 2000 and for the first nine months if 2001, lowering its net income by a total of $8.9 million, because it reported income — mainly from the Nigerian joint venture — that it didn’t have. As if that wasn’t enough, the company reported lower than expected earnings for the fourth quarter and cut its earnings forecast for 2002.

Gas compression company Hanover Compressor became the latest accounting crash test dummy to come out with its head rearranged. The company announced Tuesday that it is being examined by the Securities and Exchange Commission for some apparent financial accidents in Nigeria involving a joint venture with Royal Dutch/Shell. It is restating financial results for 2000 and for the first nine months if 2001, lowering its net income by a total of $8.9 million, because it reported income — mainly from the Nigerian joint venture — that it didn’t have. As if that wasn’t enough, the company reported lower than expected earnings for the fourth quarter and cut its earnings forecast for 2002.