Revenue

More than $500 million in revenue bonds used for pre-paid long-term natural gas supplies for a group of Southern California public power providers were downgraded to “A2” from “A1” by Moody’s Investors Service Tuesday. The bonds are part of the A-rated Southern California Public Power Authority (SCPPA), a joint powers authority formed more than two decades ago as an infrastructure financing arm for a dozen public-sector electric utilities.

More money is coming in for U.S. oil and gas producers, but a lot is going out the door to pay for exploration and production (E&P), according to a study by Ernst & Young. The consultant reported that revenue for U.S. oil and natural gas producers jumped 12% last year from 2006 levels but profits only rose 4%.

More money is coming in for U.S. oil and gas producers, but a lot is going out the door to pay for exploration and production (E&P), according to a study by Ernst & Young. The consultant reported that revenue for U.S. oil and natural gas producers jumped 12% last year from 2006 levels but profits only rose 4%.

EOG Resources Inc. has retained Meagher Oil & Gas Properties Inc. to sell operated producing properties in Oklahoma’s Lincoln and Oklahoma counties. The package includes an average 99% working interest (80% net revenue interest) in 6,442 net acres in 30 sections of which 2,463 acres are producing. The assets include 19 wells within a six-mile radius producing high-Btu gas from the Pen and Cleveland sands, EOG said. Production is 954 Mcf/d , with 2.5 b/d of oil net projected for June. Estimated net cash flow for June is $270,000. A salt water disposal well and water lines are in place. Upside, said EOG, includes one additional Peru location identified and two Hunton/Oswego extensional locations. The bid due date is May 22; the effective date is June 1. Closing is expected by June 27. Contact Jacque Semple at (918) 481-5900, extension 221.

Nicor Gas is seeking a decoupling mechanism to preserve revenue in the face of declining throughput as part of a rate hike request at the Illinois Commerce Commission (ICC). Meanwhile, two other Illinois gas utilities said their decoupling mechanisms just yielded a million-dollar payback to customers.

Although it was challenged by the Illinois attorney general, a revenue decoupling plan instituted by Peoples Gas and North Shore Gas appears to be paying off for consumers, at least for now.

Higher oil and natural gas prices have resulted in robust revenue for exploration and production (E&P) companies, but the accompanying surge in service costs has dampened the financial windfall — and an $8/Mcf gas price may be required to deliver a market return on capital going forward, according to energy analysts.

Higher oil and natural gas prices have resulted in robust revenue for exploration and production (E&P) companies, but the accompanying surge in service costs has dampened the financial windfall — and an $8/Mcf gas price may be required to deliver a market return on capital going forward, according to energy analysts.

Fitch Ratings downgraded the rating on five gas prepaid revenue bond transactions to “A+” from “AA-” with a “negative” outlook. The action follows Fitch’s downgrade to “A+” from “AA-” for Merrill Lynch & Co. Inc.