Stocks

Marathon Oil Corp. reported that it replaced 262% of its worldwide crude oil and natural gas production during 2002, excluding net sales of reserves in place. Total reserves increased 237 million boe, or 23% at year-end 2002, to 1,283 million boe.

The low level of residual fuel and distillate inventories this winter means there will be less fuel available for switching and a higher natural gas price threshold for consumers to begin switching, according to bullish analysts at Raymond James & Associates.

The low level of residual fuel and distillate inventories this winter means there will be less fuel available for switching and a higher natural gas price threshold for consumers to begin switching, according to bullish analysts at Raymond James & Associates.

Bolstered by the prospects of strengthening demand and more manageable storage stocks, the Energy Information Administration’s (EIA) latest forecast calls for spot gas prices to average around $3.54/Mcf going into the winter season, or about $1.12/Mcf above last year’s level. This is 20 cents above the price projection that the agency made in October for winter gas.

Bolstered by the prospects of strengthening demand and more manageable storage stocks, the Energy Information Administration’s (EIA) latest forecast calls for spot gas prices to average around $3.54/Mcf going into the winter season, or about $1.12/Mcf above last year’s level. This is 20 cents above the price projection that the agency made in October for winter gas.

Dominion Resources, which up until now has largely avoided the collapse in energy stocks, saw its shares tumble 10% Monday to $52.33 in response to a reduced earnings outlook for 2003. The prospective reduction will come mainly from a pending equity sale that is designed to strengthen Dominion’s balance sheet and debt coverage ratios to meet stricter standards from the credit ratings agencies, which are concerned with the heightened risk in the energy industry.

With investors sweating bullets over the carnage enveloping energy stocks, executives with Phoenix-based electric utility Pinnacle West Capital Corp. last Tuesday assured the financial community that its earnings are improving over the short term and its counterparty risk with two of the sector’s most troubled players, Williams and Dynegy, is minimal.

Previously battered energy company stocks continued to participate in the general stock market upturn, with some of those that have seen the largest losses — Calpine, AES, Mirant and Williams — now recording the greatest percentage gains. Energy companies were almost uniformly in the black, from large producers and independents through marketers, pipelines and power producers. Pure electric and gas utilities showed a few stock price losses, but those were scattered.

Financial accounting worries and a wave of bad news from several energy companies added to the negative pressure in the larger stock market early Wednesday before investor sentiment took a turn for the better in the late afternoon.