Sharply

In an update to its hurricane damage assessment, the Minerals Management Service (MMS) sharply increased the number of pipelines listed as damaged by Katrina and Rita last year to 457 from 183 based on additional industry assessments and investigations. It also raised the number of large diameter pipelines (10 inches in diameter or larger) damaged to 101 from 64 but noted that 32 have now returned to service.

Mild winter weather and sharply falling commodity costs have led utilities across the country to reduce their rates. Philadelphia-based PECO said this week that it will reduce its commodity rate by 6.5% as of March 1, resulting in lower natural gas bills for the company’s suburban natural gas customers. The commodity charge makes up more than 80% of the total gas rate, which will drop by 5.2%.

EnCana Corp. shares (ECA.TO) fell sharply last week on the Toronto Stock Exchange to $46.71 by Friday morning from more than $55/share on Monday following news that the company recommended that shareholders reject an unsolicited mini-tender offer. TRC Capital Corp. (TRC Capital) made a tender offer for up to two million shares, or 25% of the outstanding common shares of the company, at an offer price of C$54.50/share.

Citing a tight gas supply that has been exacerbated by hurricane-induced Gulf of Mexico shut-ins, PECO said sharply higher wholesale market prices have led it to impose an “unavoidable” 26% rate increase for its suburban natural gas customers. The utility said the rate hike will take effect Dec. 1.

Falling futures prices, mild temperatures, declining demand and the slow return of shut-in Gulf production sent cash prices sharply lower on Wednesday. Some points were down more than 70 cents from Tuesday’s levels and most were down 50 cents or more.

Wednesday’s screen spike, coupled with stable or increasing cooling demand, resulted in sharply higher prices across the board on Thursday. As expected, northeastern citygates averaged about $10 or more in a spot market that recorded gains ranging from C30 cents (Westcoast Station 2) to about 75 cents (Waha). Nearly all Gulf Coast points averaged more than $9.

Oklahoma City-based Devon Energy had a banner year in 2004, posting sharply higher earnings and showing solid reserves and production growth. The company’s net income was up 25% for the year to $2.2 billion ($4.38/share compared to estimates of $4.27) and net income in the fourth quarter rose 24% to $673 million ($1.35/share) compared to $543 million ($1.16/share) in 4Q2003.

In a maelstrom of bullish news, Sempra Energy Thursday not only reported sharply increased third quarter and nine-month earnings results, but also increased its overall profit projections for the year, predicting bigger growth in all three main business units and a reorganization effective next year that will split up its lagging energy services business.

In a maelstrom of bullish news, Sempra Energy Thursday not only reported sharply increased third quarter and nine-month earnings results, but also increased its overall profit projections for the year, predicting bigger growth in all three main business units and a reorganization effective next year that will split up its lagging energy services business.