After spiking higher moments after the release of fresh storage data showing a 247 Bcf withdrawal last week, natural gas futures slumped late Thursday morning as traders alleviated overbought conditions. Modest upticks were seen in the afternoon as bargain buying entered the fray. And though it was down 4.6 cents to $5.583 on its first day as prompt contract at Nymex, March was able to notch a higher high and a higher low for the session, giving some traders hope that another rally — while not likely — is possible.
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Cinergy Beats Estimates, But Earnings Slip from 2001 Levels
Cinergy Corp. shares rose 2% to $33.05 last Thursday after the company reported that it beat the average of Wall Street estimates by about 6 cents/share with reported 2002 earnings of $2.68/share before one-time charges of 55 cents/share. The special charges were for early retirement and other employee severance programs, investments, and a cumulative change in accounting principle.
Kinder Morgan Beats 2002 Consensus, But 4Q Earnings Slip 15%
Kinder Morgan Inc. (KMI) last week touted its business model and record 2002 earnings, which beat consensus Wall Street estimates. However, the company reported a 15% drop (10 cents/share) in fourth quarter net income due to special charges primarily related to a reduction in the carrying value of its power generation assets. Full-year 2002 KMI net income was up 35% to $302.7 million or $2.45/share.
Puget Shares Slip After ’03 Earnings Guidance Slashed
Puget Energy Inc. shares fell more than $2 last week to near $20/share on Friday after the company warned in an 8-K filing with the Securities and Exchange Commission that drought conditions and low hydroelectric production in the Pacific Northwest would force it to buy high-cost replacement power, which probably would have a negative impact on 2003 earnings.
Kinder Morgan Beats 2002 Consensus, But 4Q Earnings Slip 15%
Kinder Morgan Inc. (KMI) Wednesday touted its business model and record 2002 earnings, which beat consensus Wall Street estimates. However, the company reported a 15% drop (10 cents/share) in fourth quarter net income due to special charges primarily related to a reduction in the carrying value of its power generation assets. Full-year 2002 KMI net income was up 35% to $302.7 million or $2.45/share.
Futures Slip Lower in Light, Year-End Trade
In yet another in the string of topsy-turvy trading sessions, natural gas futures sunk lower Monday, as traders took profits following Friday’s advance and liquidated positions ahead of the year-end close. The selling was most concentrated just before the 1 p.m. EST closing bell, demoting the February 2002 contract to its lowest point since April 1999. At $2.570, February was down 20.4 cents for the session and just off its 32 month low at $2.545.
Enron Offers Some Stock Options, Others Get Pink Slip
As the dust begins to settle in the second coming of Ken Lay as CEO of Houston-based Enron Corp., there was no word at the end of last week as to who will become part of Lay’s brain trust on the top floor. Assuaging worries of analysts and investors, Lay and his executive team laid low last week, after acknowledging in previous days that Enron is offering some employees new stock options, which would be worth up to 5% of their salaries. However, Enron also plans to cut more than half of the 900 employees in its sagging broadband unit, moving 250 to other positions and offering severance packages to the other 250.
Enron Offers Some Stock Options, Others Get Pink Slip
As the dust begins to settle in the second coming of Ken Lay as CEO of Houston-based Enron Corp., Lay said the company will offer some employees new stock options at strike prices beginning this week, a one-time additional grant, which would be worth up to 5% of their salaries. He also said, however, that the trading giant will cut more than half of the 900 employees in its sagging broadband unit, moving 250 to other positions and offering severance packages to the other 250.
Transportation Notes
Projecting that linepack would slip below its minimum targetlevel through Thursday, Pacific Gas & Electric issued asystemwide Stage 3 OFO, effective today until further notice. Theorder carries penalties of $5/Dth for negative daily imbalancesexceeding a 3% tolerance.
Futures Slip Lower in Quiet Session
After rebounding 5% during Friday’s short-covering rally, bullsat Nymex cooled their heels yesterday as traders pressured thecontract lower on moderating weather forecasts and a less bullishtechnical outlook. At the close, the prompt August contract was off3.4 cents at $4.228.