Suggests

A post-mortem of 3Q earnings suggests that U.S. natural gas production declined 2.8% sequentially and 4.2% year-over-year, according to a report issued on Monday by Southwest Securities.

A post-mortem of 3Q earnings suggests that U.S. natural gas production declined 2.8% sequentially and 4.2% year-over-year, according to a report issued on Monday by Southwest Securities.

In reaction to El Paso Corp.’s weak exploration and production (E&P) performance in the third quarter, Moody’s Investors Service on Tuesday reduced its rating outlook to negative from stable, while analysts with Credit Suisse First Boston (CSFB) suggested a partial sale or spin-off for the E&P unit.

In yet another display of resistance to moving lower, the natural gas futures market bent but did not break Thursday morning as another triple-digit storage injection (100 Bcf) put bulls on the defensive. They battled back, however, and armed with weather reports calling for snow in Michigan and a tropical storm in the Gulf of Mexico, were successful in repelling the selling surge.

As regulators and lawyers pick apart the details of Enron Corp.’s undoing, a letter written by a company executive to CEO Kenneth Lay last year raises the possibility that the company may have to reduce past earnings by another $1.3 billion. The letter discloses two investment vehicles — one not previously disclosed — which could cut into earnings more than its four-year restatement in an 8-K filing with the Securities and Exchange Commission (SEC) last November (see Daily GPI, Nov. 9, 2001).

Defending its hostile takeover attempt for Denver-based Barrett Resources Corp., Royal Dutch/Shell Group’s CEO Walter van de Vijver sent a letter to Barrett’s board of directors Wednesday calling the $55 a share offer a “full and fair value” for the gas-rich independent. Barrett has rejected Shell’s offer and is now considering strategic alternatives (see NGI, March 12). There had been no response by Barrett at the end of last week.

Defending its hostile takeover attempt for Denver-based BarrettResources Corp., Royal Dutch/Shell Group’s CEO Walter van de Vijversent a letter to Barrett’s board of directors Wednesday calling the$55 a share offer a “full and fair value” for the gas-richindependent. Barrett has rejected Shell’s offer and is nowconsidering strategic alternatives (see Daily GPI, March 12).

A target of May 1 has been set to complete a review, and a pollsuggests the majority is receptive to change, but gas hunters stillface an uphill effort to remove a moratorium from a highly-ratedexploration target offshore of Canada’s West Coast.

A target of May 1 has been set to complete a review, and a pollsuggests the majority is receptive to change, but gas hunters stillface an uphill effort to remove a moratorium from a highly-ratedexploration target offshore of Canada’s West Coast.