Suffers

U.S. District Judge Harold Baer, Jr. in Manhattan has agreed with Allegheny Energy that its counterclaims against Merrill Lynch should be heard by the court, particularly the charges regarding whether Allegheny was misled when it purchased Global Energy Markets (GEM) from Merrill in 2001 for $490 million and a 2% equity interest in the trading unit.

Special charges related to discontinuing exploration in Pakistan and on Block 19 offshore Angola ($76 million), along with the cost of repurchasing higher-cost debt ($7.6 million) resulted in a third quarter net loss of $0.9 million or $0.01/share for Ocean Energy compared to net income of $48 million or $0.27/share in 3Q2001. Without the impact of special items, the company reported net income of $56 million or $0.31/share.

Special charges related to discontinuing exploration in Pakistan and on Block 19 offshore Angola ($76 million), along with the cost of repurchasing higher-cost debt ($7.6 million) resulted in a third quarter net loss of $0.9 million or $0.01/share for Ocean Energy compared to net income of $48 million or $0.27/share in 3Q2001. Without the impact of special items, the company reported net income of $56 million or $0.31/share.

While ONEOK’s energy marketing and trading and production units prospered in the second quarter, gathering and processing suffered as a result of lower processing spreads, cutting net income to $23.6 million or 20 cents per diluted share, compared to $27.2 million or 23 cents per diluted share for the same period a year ago.

Bartlesville, OK-based Phillips Petroleum Co. beat analysts’forecasts and saw its fourth quarter earnings more than triple inthe fourth quarter of 2000 for the same reason its peers had recordresults: strong natural gas and oil prices.

Power reserves were short again yesterday during a continuingheat wave in California, and the state’s independent systemoperator (ISO) had to declare a stage one emergency, meaningreserves were below 7% of expected peak demand, or about 3,000 MW,outages were possible and electricity conservation was a priority.

Columbia Energy Group barely overcame warmer than normaltemperatures, weak gas prices and higher marketing costs during thefirst quarter to post a 2% increase in earnings. The companyreported first quarter 1999 earnings of $150.4 million, or $1.81per share, up $2.9 million, or four cents per share, from $147.5million or $1.77 per share in the 1998 first quarter. Strongperformances by its regulated transmission, storage anddistribution operations, as well as its propane, power generationand LNG activities were offset by continued difficulties inmarketing and exploration and production.