Significant

Significant strategic changes at Enron, including the sale ofEnron Oil & Gas and planned divestiture of Portland GeneralElectric, made the headlines in 1999, but its traditionaloperations more than carried the company flag.

Significant changes to Enron’s corporate structure, includingthe sale of Enron Oil & Gas and planned divestiture of PortlandGeneral Electric, made the headlines in 1999, but its traditionaloperations more than carried the company flag. Enron posted awhopping 37% increase in net income to $957 million and an 18% risein earnings per share to $1.18 for the year. Its revenues rose 28%to $40 billion and its marketed volumes jumped 19% to 32 trillionBtue/d. North American gas sales volumes reached 13 Bcf/d up from10.6 Bcf/d while U.S. power sales fell slightly to 380.5 millionMWh from 401.8 million MWh in 1998.

The role of liquefied natural gas (LNG) in the U.S. gas supplymix continues to grow as 1999’s third quarter saw a significantpercentage jump in LNG imports. According to the U.S. Department ofEnergy’s Office of Natural Gas & Petroleum Import and ExportActivities, total gas imports grew by 15% over the third quarter of1998 while LNG imports were up a strong 221% over the same period.A 10% rise in Canadian imports and a 154% rise in Mexican importswere also noted. At the same time, U.S. exports of gas to Mexicogrew by 41%.

The Maritimes & Northeast Pipeline overcame a significantpolitical hurdle last week, signing an agreement with protestingNova Scotia Indians that smoothes the way for deliveries of 450MMcf/d of Sable Island gas to begin by the end of the year. Theagreement with the Assembly of the Nova Scotia Mi’kmaq Chiefscovers a wide variety of environmental and socio-economic programsgiving native Indians a head start on industry-related jobs andtraining and ensures that Indians on a Mi’kmaq reserve will be thefirst Atlantic Canadians to receive gas. The National Energy Boardadded its final stamp of approval.

GE Power Systems expanded its already-significant turbinemanufacturing force with yesterday’s announced purchase ofWeatherford Global Compression Services’ Gemini division. Financialterms of the acquisition were not disclosed.

Marking a significant increase from 1998, Burlington Resourcesestimated its replacement of reserves at 140% of total productionat a cost of 72 cents/Mcfe, the company said yesterday. Theseresults compare to 123% of replaced production at $1.10/Mcfe in1998. The bullish production news was dampened somewhat by theannouncement of a $225 million fourth quarter charge because ofperformance-related downward adjustments to some Gulf of MexicoShelf and Permian Basin assets.

BP Amoco strengthened its position as North America’s No. 1 gasproducer through a $500 million deal to buy a significant part ofRepsol-YPF’s holding in Crescendo Resources, a major gas producerand processor in Texas and Oklahoma.

Columbia Energy Group is planning some significant investmentsin wholesale power generation and possibly foreign utilities andhas filed a request with the Securities and Exchange Commission toexpand its authority under the Public Utility Holding Companies Actto make such investments. Columbia told the commission it wants tobe able to invest an amount equal to 100% of its annual earnings.It currently is authorized to invest only 50% of its earnings insuch projects.

CMS Marketing, Services and Trading, (CMS-MST) has madesignificant additions to its energy services operations recently,signing a five-year energy management agreement with Chicago-basedBank One Corp. last week and expanding its national presencethrough the purchase of Viron Corp. from York International in lateSeptember.