Rise

Developers in 2000 set an all-time record in the United Statesfor production of megawatt capacity from natural gas-firedturbines. The interesting part about the new record is that it isexpected to be more than doubled in 2001, according to a new studyconducted by A. Michael Schaal of Energy Ventures Analysis, Inc.(EVA).

If you were among those amazed by the virtual hailstorm ofmergers and acquisitions in the power and utility sector this year,PricewaterhouseCoopers warns, you haven’t seen anything yet.According to an M&A forecast by the Transaction Services groupwithin the firm, the “once sleepy and over-regulated [energy]industry” is the key M&A segment to watch in 2001.

If you were among those amazed by the virtual hailstorm ofmergers and acquisitions in the power and utility sector this year,PricewaterhouseCoopers warns you haven’t seen anything yet.According to an M&A forecast by the Transaction Services groupwithin the firm, the “once sleepy and over-regulated [energy]industry” is the key M&A segment to watch in 2001.

In announcing a 46% increase in third quarter profits led by adoubling of earnings from the company’s nonregulated operations, ElPaso CEO William Wise said last week he expected the company’sacquisition of PG&E Gas Transmission Texas to win finalapprovals from the Federal Trade Commission and the Texas AttorneyGeneral’s office “literally any moment now.” He also said theCoastal merger still is expected to be completed in the fourthquarter.

In announcing a 46% increase in third quarter earnings yesterdayled by a doubling of earnings from the company’s nonregulatedoperations, El Paso CEO William Wise said he expected the company’sacquisition of PG&E Gas Transmission Texas to win finalapprovals from the Federal Trade Commission and the Texas AttorneyGeneral’s office “literally any moment now.” He also said theCoastal merger still is expected to be completed in the fourthquarter.

Even with its natural gas production lagging by more than 100MMcf/d and oil production dropping by more than 15,000 b/d,Burlington Resources was still able to boost its net income from1999’s third quarter of $61 million ($.28 per share) to this year’sthird quarter level of $200 million ($.93 per share) due torealized oil and gas prices rising 47% and 42% respectively fromlast year’s 3Q.

TransCanada PipeLines Ltd. (TCPL) reported that it now expects proceeds from its non-core asset divestiture program to rise from the previous estimate of $3 billion to $3.45 billion. As a direct result of this, the company expects to record a positive $200 million after-tax adjustment to last year’s provision for discontinued operations in the third quarter of 2000.

Following an East-West swing market division the day before,everybody was on the same page Tuesday. Except for merely smallgains at western points where Canadian gas is traded (i.e., Sumas,Stanfield, intra-Alberta), double-digit increases reigned. Octobernumbers also were reported rising.

Burlington Resources expects to top First Call/ThomsonFinancial’s earnings estimate for the company’s third quarter by$.06 to $.11 cents, but reports production may lag in comparison tolast quarter due to the “natural decline” in some of its operationareas.