Unprecedented sustained peaks in electricity prices throughoutthe Pacific Northwest and California in May and June, compounded bywholesale trading mistakes made in early May, are contributing to”significant losses” in the second quarter for Avista Corp.’sregulated utility operations, the company revealed yesterday.
Shortfall
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Williams Predicts 3Q Earnings Shortfall
Williams share prices slid 5% but then rebounded late last weekand analysts adjusted their earnings forecasts following anannouncement that the company expects third quarter earnings pershare to be “substantially below” current Wall Street estimates of20 cents/share. The company said a change in accounting standardsand cooler than normal temperatures in Southern California, itsmajor power sales area, were to blame. But that’s just half thestory.
Williams Predicts 3Q Earnings Shortfall
Williams share prices dipped nearly 5% to $40.88/share yesterdayfollowing an announcement that the company expects third quarterearnings per share to be “substantially below” current Wall Streetestimates of 20 cents/share. The company said a change inaccounting standards and cooler than normal temperatures inSouthern California, its major power sales area, were to blame. Theannouncement was made partly in preparation for WilliamsCommunications’ initial public offering next month.
Transportation Notes
A lightning strike Monday night at PG&E GasTransmission-Northwest’s Station 13 (Chemult, OR) caused ashortfall in receipts, but PG&E GT-NW said it worked with NOVAto correct respective linepacks under an Operational BalancingAgreement and thus did not expect any impact on Tuesday’s scheduledvolumes. However, it was unable to schedule any increased receiptsat Kingsgate or additional deliveries through Station 13 Tuesday.
EOG’s Hogland Predicts Supply Shortfall
Storage overhang isn’t enough to temper the optimism of EnronOil & Gas Chairman Forrest Hoglund when it comes to the outlookfor gas this year and next. With demand expected to grow andproduction expected to fall – 3% by Hoglund’s count – on softdrilling activity, the coming months are shaping up to be good onesfor producers.
SSB Sees 1 Bcf/d Production Shortfall by 3Q
Salomon Smith Barney (SSB) said it is expecting a decline of 400MMcf/d in gas production during the first quarter of this yearcompared to the same period last year and a drop of about 1 Bcf/dby the second half of the year because of the sharp decline indrilling activity. SSB is forecasting gas production in 1999 willbe down 1 Bcf/d compared to last year.
PacifiCorp Anticipating Earnings Shortfall
PacifiCorp said last week it expects its third-quarter earningswill be 50% below securities analysts’ expectations of $0.41/shareand its annual earnings will be significantly below analysts’forecast of $1.27 per share.
PacifiCorp Expects Earnings Shortfall
PacifiCorp said yesterday it expects its third quarter earningswill be 50% below securities analysts’ expectations of $0.41/shareand its annual earnings will be significantly below analysts’forecast of $1.27 per share.