Sparked

Sparked by the company’s earnings guidance reduction last week, Moody’s Investor’s Service said Monday it has placed the debt ratings of NUI Utilities, Inc. (“NUI”) and that of its parent holding company, NUI Corp. under review for possible downgrade. The review affects approximately $260 million and $60 million of NUI Utilities’ and NUI Corp.’s debt securities, respectively.

Dynegy Inc. finally sparked the investor confidence it sorely needed last week following a teleconference ostensibly to report first quarter earnings. Instead, news that it had renewed its much-needed revolving credit line for $900 million 24 hours before the deadline — thus guaranteeing the company’s liquidity in even the worst case scenario — pulled the stock ahead nearly 30% in one day. Chairman Chuck Watson also appeared to soothe Wall Street nerves with his corporate-wide commitment to retain an investment credit rating, making it Dynegy’s top priority going forward.

Based on the recent resurgence in the U.S. economy and the technical gas futures rally sparked in part by a surge in oil prices, Salomon Smith Barney (SSB) analyst Robert Morris has raised his natural gas price forecast for 2002 and 2003, joining the ranks of other investment analysts. Earlier last week, Raymond James & Associates analyst Wayne Andrews cited stronger supply-driven fundamentals as a reason for his more bullish near-term gas outlook for higher prices during the second and third quarters.

Sparked by much higher natural gas and oil prices during 2000, major U.S. energy companies posted net income of $53.2 billion for the year 2000, representing a 133% increase over 1999’s results, according to EIA’s Performance Profiles of Major Energy Producers 2000. The recent report showed that profits in 2000 notched a record high in EIA’s 27 years of surveying the industry through its Financial Reporting System (FRS).

Sparked by much higher natural gas and oil prices during 2000, major U.S. energy companies posted net income of $53.2 billion for the year 2000, representing a 133% increase over 1999’s results, according to EIA’s Performance Profiles of Major Energy Producers 2000. The recent report showed that profits in 2000 notched a record high in EIA’s 27 years of surveying the industry through its Financial Reporting System (FRS).

Williams saw its earnings jump 63% in the third quarter, mainly due to its acquisition of Denver-based producer Barrett Resources Corp. and strong earnings from its Energy Marketing & Trading segment, which was broken out as the company’s third industry group in September. The earnings gave Williams the impetus to raise its 2001 earnings forecast to the current consensus of $2.40 a share from a previous $2.30-$2.35 a share, and it reiterated a 15%/year earnings growth goal beginning in 2002.

Williams saw its earnings jump 63% in the third quarter, mainly due to its acquisition of Denver-based producer Barrett Resources Corp. and strong earnings from its Energy Marketing & Trading segment, which was broken out as the company’s third industry group in September. The earnings gave Williams the impetus to raise its 2001 earnings forecast to the current consensus of $2.40 a share from a previous $2.30-$2.35 a share, and it reiterated a 15%/year earnings growth goal beginning in 2002.

Due to the increased natural gas demand in the country sparked by new gas-fired generation coming online, the United States is experiencing the largest wave of pipeline infrastructure expansion since the early 1960’s , according to a recent advisory from Industrial Information Resources Inc. (IIR). The consultant group said it expects 25,000 miles of gas transmission pipeline will be constructed by 2010 and an additional 13,000 miles by 2015, with estimates ranging up to 275,000 miles or more of distribution pipelines.

Due to the increased natural gas demand in the country sparked by new gas-fired generation coming online, the United States is experiencing the largest wave of pipeline infrastructure expansion since the early 1960’s , according to a recent advisory from Industrial Information Resources Inc. (IIR). The consultant group said it expects 25,000 miles of gas transmission pipeline will be constructed by 2010 and an additional 13,000 miles by 2015, with estimates ranging up to 275,000 miles or more of distribution pipelines.