Stronger

Enterprise Products Partners LLC holds a substantial share of the U.S.natural gas liquids (NGL) market, and its intrastate natural gas pipeline system in Texas is stronger than ever. So what’s the next thing? CEO Robert Phillips said Thursday the master limited partnership (MLP) now has its sights set on the interstate gas pipeline market.

El Paso Corp. swung to a profit in the second quarter, led by a stronger-than-expected performance from its core natural gas pipeline division and from gains on price risk investments. The Houston-based company reported quarterly net income of $141 million (21 cents/diluted share), well ahead of its losses of $246 million (minus 38 cents) for the same period a year ago and 3 cents above Wall Street estimates.

El Paso Corp. swung to a profit in the second quarter, led by stronger-than-expected performance from its core natural gas pipeline division and from gains on some price risk investments. The Houston-based company reported quarterly net income of $141 million (21 cents/diluted share), well ahead of its losses of $246 million (minus 38 cents) for the same period a year ago and 3 cents above Wall Street estimates.

Prices were mixed in Wednesday’s resumption of trading after a four-day holiday weekend, but generally tended to be stronger in the Midcontinent and West and weaker in the Gulf Coast and Northeast. Rains were dampening power generation load from New Mexico and Texas through the Southeast and Mid-Atlantic, and below normal temperatures in several other areas left the desert Southwest as the only remaining repository of high heat levels.

Thanks to stronger numbers throughout the Midcontinent and West, gains outweighed losses in a mixed cash market Wednesday. Much like the expiring April futures contract, many points didn’t stray very far from flat.

Natural gas-focused Questar Corp.’s quarterly earnings were up 42% on stronger production results and higher realized prices for gas, oil and natural gas liquids (NGL), as well as increased gas gathering and processing volumes and margins. However, the company warned that the recent decline in gas prices will impact 2006 earnings.

Calpine Corp. is evaluating the sale of up to eight power plants to capture stronger market valuations under a broader strategic initiative rolled out last Wednesday aimed at dramatically enhancing the company’s financial strength.

High temperatures in the 80s across most of country east of the Rockies prompted some stronger power generation loads on Tuesday and prices were bumped up anywhere from a few cents to as much as a quarter, but several sources said they expected the market to weaken later in the week as temperatures returned to normal. Storage injection demand, however, should continued to provide price support.

The energy merchant sector has been rebuilt, stronger than ever — and those leading the parade are more than likely the large oil and natural gas producers that once used middlemen to market their natural gas. Also coming out of the closet as energy merchants under their own names are the bankers that used to finance the marketers.