Stable

Given a trend of a 2%-2.5% a year decline in U.S. natural gas production and stable Canadian output, North American production overall appears “likely” to deteriorate at least 0.5-0.75 Bcf/d a year for the foreseeable future, according to a survey by Southwest Securities. Meanwhile, the latest rig counts suggest Canadian producers are getting a jump start on winter drilling.

Calgary, AB-based Canadian Superior Energy Inc. said last week that it has entered into an agreement with the Canadian division of El Paso Corp. to acquire El Paso’s Drumheller Area oil and gas assets, production facilities, gas plants and undeveloped lands located in Central Alberta.

Calgary, AB-based Canadian Superior Energy Inc. said Monday that it has entered into an agreement with the Canadian division of El Paso Corp. to acquire El Paso’s Drumheller Area oil and gas assets, production facilities, gas plants and undeveloped lands located in Central Alberta.

With adequate liquidity now an increasing focus of credit analysis in the energy industry, Dominion Resources Inc. (BBB+/Stable/A-2) is a “good example” of a company with improving liquidity, according to Standard & Poor’s (S&P) in a new report released Friday.

ANR Pipeline locked in a stable source of income for the next eight years by renegotiating firm transportation and storage agreements with its largest customer, Wisconsin utility We Energies, covering 866,500 Dth/d of service starting in 2003 and extending under various terms to 2010. Many of the contracts were due to expire in 2003.

ANR Pipeline locked in a stable source of income for the next eight years by renegotiating firm transportation and storage agreements with its largest customer, Wisconsin utility We Energies, covering 866,500 Dth/d of service starting in 2003 and extending under various terms to 2010. Many of the contracts were due to expire in 2003.

As a third quarter rarity in the energy industry showing increased profits and a stable stock price, Bellevue, WA-based Puget Energy executives said last week they see 2003 as a chance to shake off two industry albatrosses — depressed wholesale power prices and a “dark cloud” of uncertainty hovering over western energy companies from the pending federal investigations of alleged trading and price manipulation in the wholesale market.

Exxon Mobil Corp., BP p.l.c. and the Shell Group of companies had some good news and some bad news for their shareholders last week. The good news: they made a profit. The bad news: for each of them it was somewhere between 36-40% less than last year. Mitigating factor: last year’s 2Q was at record highs. The culprits: lower gas and oil prices and a drop in refinery returns this year.

It’s too soon to tell whether Dynegy Corp.’s proposed merger with Enron Corp. will be approved by federal regulators, but the most critical problem may not be how big the two companies’ trading power will be, but how much Enron’s shrinks over the next few months, analysts noted last week. If Enron regains and retains the number one position it held just weeks ago, federal approval may be questionable; if Enron’s market share is diluted, the merger may stand a better chance of succeeding.