Seven

Houston-based Hanover Compressor Co., which has already restated the financial results for its last seven fiscal quarters, said its annual reports since going public in 1997 have contained an “error” that makes it appear the company built less equipment than it actually has. The company makes pumps that move natural gas and oil through pipelines and from wells. CFO John Jackson said the company ” inadvertently” omitted the amount of equipment made at an Oklahoma factory, and not including that output, makes it appear that fabrication costs for some compressors were higher than they actually were, he said. Jackson said the error will be corrected in this year’s annual report, and said the correction would not affect prior revenue or earnings. The annual report is expected to be released in early April. Jackson succeeded former CFO William Goldberg in February after Hanover said it would restate its previous earnings as far back as January 2000.

UtiliCorp United announced last week that it changed its corporate name to Aquila Inc., the energy trading and risk management subsidiary in which it sold an interest to the public in 2001 and then later re-acquired. The company’s common stock now trades on the New York, Pacific and Toronto stock exchanges under the symbol ILA, which has replaced the UtiliCorp symbol UCU.

UtiliCorp United announced Monday that it has changed its corporate name to Aquila Inc., the energy trading and risk management subsidiary in which it sold an interest to the public in 2001 and then later re-acquired. The company’s common stock now trades on the New York, Pacific and Toronto stock exchanges under the symbol ILA, which has replaced the UtiliCorp symbol UCU.

After twice failing to break to a new seven-week daily continuation chart high, natural gas futures tumbled lower in the last 75 minutes of trading Thursday as commercial and local traders took profits notched during the bull run of the last 10 days. The April contract was the hardest hit by the late sell-off, giving back 7 cents for the session to close at $2.357. The out months slipped as well but by a lesser degree, which served to widen the market’s forward carry premium.

The latest question revolving around Houston and the energy trading community as the week begins is how low can Enron Corp.’s stock go? On Monday, the stock dropped to a low not seen since 1994, failing to boost investor confidence as it lobbied banks for a new credit line. As investors bailed, Moody’s Investor Service cut the energy trader’s long-term debt ratings, and by the time the New York Stock Exchange had closed, Enron had fallen another 10.9%, losing $1.60 to stand at $13.95.

For the sixth time in seven trading sessions, natural gas futures advanced higher yesterday amid technical bullishness, and as traders continued to grapple with the possibility that the year-on-year storage deficit—currently at 404 Bcf—will be difficult to trim this summer when gas is in high demand for electricity generation. The May contract led all months Tuesday, finishing 8.2 cents stronger at $5.559.

President Bush yesterday announced his intention to nominateVicky A. Bailey, who served as FERC Commissioner for seven years,to be assistant secretary of energy for international and domesticpolicy. She departed the Commission last February to becomepresident of PSI Energy Inc., Indiana’s largest electric utilityand a subsidiary of Cinergy Corp. Bailey, a Republican, was firstnominated to FERC by President Clinton in 1993 to serve a termthatexpired in 1996 and then was renominated for a five-year term. Sheleft the Commission before her full term was up. An Indiana native,Bailey served on the Indiana Utility Commission from 1986 to 1993.

Almost seven months after the initial agreement, ChesapeakeEnergy Corp. announced it has completed the acquisition of GothicEnergy Corp., making it the 10th largest independent natural gasproducer in the United States. The acquisition marks theturn-around of Chesapeake, which two and a half years ago tried tosell itself due to repeated losses.

Sonat said it planned to implement an OFO Type 3 for sevendelivery groups Sunday and was anticipating it would beallocating/limiting interruptible capacity for the ChattanoogaGroup and North Alabama Group until further notice. Based onweather forecasts and projected demand, it is likely that the OFOand allocations will remain in effect through at least the end oftoday’s gas day, the pipeline said Friday. Nine groups on Sonat’sSouth Georgia system became subject to an OFO Type 22 Sunday.