Sector

In responses to pleas it heard earlier in the month from the nonprofit social service sector, the California Public Utilities Commission Thursday approved added protection for qualified low-income utility customers against this winter’s expected high natural gas costs. The CPUC made significant changes to two of the state’s major low-income customer programs.

Receiving support from current events in the petroleum futures sector, September natural gas futures on Monday erupted higher, reaching levels not seen since the January 2005 contract reached an $8.23 high on Nov. 29, 2004.

The exploration and production (E&P) sector will continue to benefit from “very favorable” industry fundaments as the year progresses because of two factors: strong earnings because of high commodity prices that have far outpaced service costs and “attractive” stock valuations, according to a report by Raymond James’ energy analysts.

Peeling back some of the underlying impacts on first quarter results among Western energy sector players this month, high wholesale natural gas prices play a part in just about all of them as found in the varying levels of success among several companies this week.

Producer earnings continue to top the energy sector with ExxonMobil Corp.’s 1Q2005 profit up 44%, Royal Dutch/Shell Group’s up 42%, Marathon Oil Corp. up 26%, Unocal Corp. posting a 69% increase and Apache Corp.’s profit up 62% over a year ago. However, only Unocal and Apache reported natural gas and oil production gains, illustrating the continuing supply struggle in the marketplace.

As the two smallest of the private-sector energy utilities in Colorado, Kinder Morgan and Aquila are drawing a line in the Rocky Mountain clay soil with the state regulatory commission staff’s proposal to change the rules on how and what the electric and natural gas distributors must do to determine allocation of their costs. The two energy suppliers argue that the proposal will result in long, costly litigation fights among the companies, Public Utilities Commission (PUC) staff and customers.

As the two smallest of the private-sector energy utilities in Colorado, Kinder Morgan and Aquila are drawing a line in the Rocky Mountain clay soil with the state regulatory commission staff’s proposal to change the rules on how and what the electric and natural gas distributors must do to determine allocation of their costs. The two energy suppliers argue that the proposal will result in long, costly litigation fights among the companies, Public Utilities Commission (PUC) staff and customers.

In one of the energy sector’s biggest initial public offerings (IPOs) this year, Bill Barrett Corp., the three-year-old Denver-based exploration and production (E&P) company, raised $325 million — more than expected — on Thursday after the oil and natural gas company’s shares priced above the expected range.

In one of the energy sector’s biggest initial public offerings (IPOs) this year, Bill Barrett Corp., the three-year-old Denver-based exploration and production (E&P) company, is expected to raise more than $300 million to develop an area its savvy executive team knows well: the Rocky Mountains.