Rose

AGL Resources reported a 32% increase in second quarter net income compared to the same period in 2001. Net income rose to $12.3 million, or $0.22/share, compared with $9.3 million, or $0.17/share, and exceeded First Call consensus estimates of $0.20/share. The key drivers were lower operation and maintenance costs and depreciation expense in the distribution operations segment, improved contributions in the energy investments segment from SouthStar Energy Services, and lower corporate interest expense. “The seas are more turbulent, but we’re still on course,” said CEO Paula G. Rosput. “Despite the challenges within our industry, we are able to stay focused on strategies that are strengthening our cash flows, balance sheet and earnings.” Distribution operations contributed earnings before interest and taxes (EBIT) of $47.5 million, a $3 million increase from the same quarter last year that was achieved despite a lower operating margin and primarily as a result of lower utility operating and maintenance costs due to operational efficiencies and synergies from the company’s acquisition and integration of Virginia Natural Gas. Depreciation expenses were lower due to a change in depreciation rates established as part of Atlanta Gas Light’s performance-based rate plan. Sequent Energy Management’s EBIT contribution in second quarter 2002 declined $0.9 million to a loss of $2.3 million, compared with a loss of $1.4 million for the same period last year. Despite increased volumes and revenue contribution, Sequent’s overall contribution was limited by lower volatility in the Southeast energy market and increased expenses for the continued implementation of the back- and mid-offices. The energy investments segment’s EBIT contribution increased $2.2 million, or about 40%, compared to the same period one year ago, due to lower wholesale gas costs relative to retail prices. The segment still had an EBIT loss of $3.3 million. AGL Resources management said it expects to meet or exceed the earnings guidance previously stated for fiscal year 2002 of $1.65 to $1.70 per share.

While overall transportation-related fatalities rose slightly nationwide during 2001, deaths caused by pipeline explosions or other malfunctions fell significantly, according to preliminary figures released last Monday by the National Transportation Safety Board (NTSB).

Mirant shares rose sharply last Monday and remained in positive weekly territory on Friday after CEO Marce Fuller said the company would beat earnings forecasts and should have a solution to its credit woes in place before the end of the summer. However, the solution is likely to look a lot different than what was expected a few months ago when the idea was first announced, she said.

Canadian gas production was up 2.4%, or 300 MMcf/d, during the first quarter compared to first quarter 2001, according to statistics compiled by Lehman Brothers. However, Lehman analyst Thomas Driscoll said he expects production to decline between 1% and 6% over the remainder of the year based on historical trends, leaving year-end production up as much as 1% or down as much as 4%.

Could astrology have the answer for why gas prices rose to $3 last week? Explanations are getting pretty hard to come by particularly when a near record warm winter is coming to a close and working gas levels in storage are expected to end the heating season more than double what they were at the same time last year.

Astrology could have the answer for why gas prices rose to $3 this week. At least it looks like Virgo called it right today. Virgo says “lie low, play the waiting game, focus on power.” Gas prices fell sharply after the storage report was released at 2 p.m. by the American Gas Association (AGA). Maybe the astrologers are on to something.

Last week was undoubtedly the most action-packed since the scandal enveloping Enron Corp. surfaced last fall, opening with the release of a scathing internal report that identified a corporate climate rife with self-dealing and self-enrichment schemes by Enron top officers, and closing with former CEO Jeffrey Skilling’s stunning testimony before Congress that he “unequivocally” believed Enron was on solid financial footing when he left the company in August 2001. He further disavowed knowing the controversial off-the-book partnerships that led to Enron’s collapse were intended to hide debt and inflate earnings.

Eastern prices rose about a dime or so Wednesday, in whatsources said was almost purely a delayed response to the screen’sadvance of nearly a quarter the day before. Despite a coastal stormthat left the Southeast shivering in some areas, and was movinginto the Northeast, weather was almost a total non-event for gasdemand, they said.

Shares of BP Amoco and Atlantic Richfield Co. (ARCO) rose lastFriday following press reports that the companies agreed to selloff all of ARCO’s Alaskan assets to avoid going to court with theFederal Trade Commission (FTC) over their proposed merger.