Surprises

Burlington Resources Inc., Anadarko Petroleum Corp., Devon Energy Inc. and Sunoco posted the “biggest earnings surprise” in the third quarter, with earnings 15-28% higher than expected, followed by ConocoPhillips, EOG Resources Inc. and Occidental Petroleum Corp. in the 13-14% range, according to a new report by CreditSights analysts.

There have been few surprises in domestic producers’ earnings reports for the fourth quarter and all of 2001. Despite record production in the first half– pushed during a high commodity price cycle — U.S. companies saw their fortunes fall along with commodity prices in the last half of the year, and they paid dearly for it in the fourth quarter. Apache Corp. reported Thursday that its fourth quarter earnings fell 70% compared to 2000, and leading independent Anadarko Petroleum Corp., which already had to restate its third quarter earnings to include a $1.1 billion charge, said Thursday its final quarter also saw a sharp earnings decline.

Just when it seemed the cash market was locked into an endless downward spiral, it found a plateau on which to level off Thursday. Flatness was the order of the day for most points, while others were mildly higher or lower. Spot points in California and the Pacific Northwest/Western Canada softened by about a nickel or a little more.

In a move that surprised power traders last week, Peabody Groupsold its marketing subsidiary Citizens Power to merchant powergenerator Edison Mission Energy for an undisclosed amount. CitizensPower is ranked as the eighth largest power marketer in the UnitedStates, and had trades totaling 92.3 million MWh last year. EdisonMission, based in Irvine, CA, currently only trades power in theNortheast, where it operates a 650 MW power plant in Homer City,PA. That plant serves the PJM Interconnection and New York markets.

In a move that surprised power traders last week, Peabody Groupsold its marketing subsidiary Citizens Power to merchant powergenerator Edison Mission Energy for an undisclosed amount. CitizensPower is ranked as the eighth largest power marketer in the UnitedStates, and had trades totaling 92.3 million MWh last year. EdisonMission, based in Irvine, CA, currently only trades power in theNortheast, where it operates a 650 MW power plant in Homer City,PA. That plant serves the PJM Interconnection and New York markets.

The cash market was mostly flat to a few cents softer Friday,surprising more than one source who had expected bigger declinesbased on the usual slump in weekend demand. Apparently a new winterstorm revving up in the Midwest had traders nervous about going tooshort. Also, some well freeze-offs were reported affecting allpipes in Oklahoma to small degrees. A Tulsa marketer said mostpeople were going home early after icy roads caused the schools toclose.