Revenue

Up to 30 Gulf of Mexico (GOM) jack-up rigs will have been moved to international waters between late 2005 and early 2007 — a 25% capacity reduction in the GOM fleet in just over a year’s time — which will lead to domestic producers paying more and using more fixed contracts to tap into their reserves, Raymond James energy analysts noted in the latest “Stat of the Week.”

As Alaska Gov. Frank Murkowski prepares to pass along to the next governor the results of two years of work on a gas pipeline contract with major producers BP, ExxonMobil and ConocoPhillips, at least two of the three candidates, Republican Sarah Palin and Democrat Tony Knowles, indicated they will start the process with an open competition among multiple pipeline project proposals. The third candidate, Independent Andrew Halcro, favors using the Murkowski negotiated deal as a base but with significant modifications.

Kinder Morgan Inc. (KMI), whose management in May made an ambitious bid to take the company private (see NGI, June 5), reported 2Q2006 income from continuing operations rose 11% from a year ago to $141.7 million ($1.05/share) from $117.3 million ($0.95), before special items. Kinder Morgan Energy Partners LP (KMP), the master limited partnership owned by KMI, also reported strong quarterly growth, up 8% to $242.2 million ($0.50/unit), ahead of $224.8 million ($0.51) reported a year ago.

Calgary-based independent Nexen Inc. Thursday reported net income doubled in the second quarter to C$406 million ($360 million), or C$1.55 a share, on strong commodity prices. Revenue rose 6% to C$1.04 billion ($919 million), and cash flow was C$729 million ($644 million). However, Nexen’s oil and gas production was down from a year ago, partly because of continued shut-ins in the Gulf of Mexico (GOM) following last summer’s hurricanes.

Calgary-based independent Nexen Inc. Thursday reported net income doubled in the second quarter to C$406 million ($360 million), or C$1.55 a share, on strong commodity prices. Revenue rose 6% to C$1.04 billion ($919 million), and cash flow was C$729 million ($644 million). However, Nexen’s oil and gas production fell, partly because of continuing shut-ins in the Gulf of Mexico (GOM) following last summer’s hurricanes.

ONEOK utility subsidiary Oklahoma Natural Gas Co. (ONG) filed a $99.4 million annual revenue increase Friday with the Oklahoma Corporation Commission. ONG said the increase, which would be about $10/month for the average residential customer, would cover additional investments in its distribution system, higher operational costs and taxes.

The federal Internal Revenue Service earlier this month sued Public Service Company of New Mexico (PNM), alleging the utility received $4.2 million in 1998 and 1999 income tax refunds and claimed even more based on accounting methods that the IRS now contends were bogus. The allegations were made in a lawsuit filed in a federal district court, noting that PNM supposedly made the claims on the advice of its accounting firm, Deloitte & Touche LLP.

The federal Internal Revenue Service earlier this month sued Public Service Company of New Mexico (PNM), alleging the utility received $4.2 million in 1998 and 1999 income tax refunds and claimed even more based on accounting methods that the IRS now contends were bogus. The allegations were made in a lawsuit filed in a federal district court, noting that PNM supposedly made the claims on the advice of its accounting firm, Deloitte & Touche LLP.

A one-time income tax recovery, which inflated financial results in last year’s second quarter, sent Canadian Natural Resources Ltd.’s quarterly earnings this year plunging 51%, but the lower profit did not deter the Calgary-based producer from showing off strong growth in oil and natural gas production.