Shift

El Paso Corp. shares plummeted 22.5% to $6.20 Wednesday in response to a dramatic shift in strategy and drastic financial measures taken by the company because of its seriously weakened financial position. The company said it will cut its common stock dividend by 82%, a larger amount than was expected by some analysts, to provide about $425 million in annual cash flow. It also will sell another $2.9 billion in assets to help provide funds for continuing operations. The company currently has liquidity of $2.6 billion but only about $600 million is cash.

Upstream capital spending rose 13.7% worldwide in 2001, with the largest increase in Canada, according to a new report by John S. Herold Inc. Meanwhile, U.S. spending dropped $2 billion last year to $43 billion, with a 50% drop in mergers and acquisitions (M&A). Analysts said that drop in M&A may signal a greater focus and more spending on North American exploration and production (E&P) and less worldwide.

Upstream capital spending rose 13.7% worldwide in 2001, with the largest increase in Canada, according to a new report by John S. Herold Inc. Meanwhile, U.S. spending dropped $2 billion last year to $43 billion, with a 50% drop in mergers and acquisitions (M&A). Analysts said that drop in M&A may signal a greater focus and more spending on North American exploration and production (E&P) and less worldwide.

North American exploration and production spending in 2003 will be more focused, shifting mostly toward Canadian and deep-shelf Gulf of Mexico (GOM) natural gas plays where there are “significant” opportunities to replenish U.S. gas supplies, according to a report by RBC Capital Markets analysts.

Despite the recent run-up in natural gas prices, the U.S. Energy Department believes a shift to the downside is likely because of excess storage, more than adequate production capacity and only a moderate increase in demand. The downturn will come “once the summer season starts and the weakness of (storage) injection-related wellhead demand becomes more apparent,” according to the Short-Term Energy Outlook issued last week.

In a blistering comeback to Enron Corp.’s lawsuit against its former merger partner, Dynegy Inc. attorneys last week filed a 51-page response in U.S. Southern District Bankruptcy Court of New York to answer charges that Dynegy had been responsible for Enron’s downfall.

In a blistering comeback to Enron Corp.’s lawsuit against its former merger partner, Dynegy Inc. attorneys Monday filed a 51-page response in U.S. Southern District Bankruptcy Court of New York to answer charges that Dynegy had been responsible for Enron’s downfall.

In what might be its most bullish four-cent decline in recent memory, natural gas futures rebounded late in the session Wednesday as traders were able to look past a double helping of bearish storage news to bid up prices in the closing 20 minutes of trading. With its $2.813 closing price, the December contract was 3.9 cents lower for the session, but an impressive 7 cents above its low for the session.

A western senator yesterday urged Capitol Hill lawmakers not to spend too much time on the issue of drilling in the Arctic National Wildlife Refuge because, he cautions, it’s not going to get through Congress.