Survival

The emergence of gas shale plays has been a game-changer for the industry and the outlook for gas supply. The scale of the shales is so great that it threatens the survival of the “individual wildcatter,” who with only a half-dozen employees drilling a few dozen wells a year will find it difficult to compete, Chesapeake Energy Corp. CEO Aubrey K. McClendon said Thursday.

As several competitors struggled for their very survival last week, Duke Energy reported earnings rose to 57 cents per share in the second quarter from 54 cents a share a year ago, due to hefty profits in the company’s gas pipeline business, which it said offset lower results for its sagging merchant energy business. Wall Street responded favorably to the news, with Duke Energy stock gaining about 27% in value for the week to trade at $22.45 a share late Friday.

As several competitors struggled for their very survival Tuesday, Duke Energy reported earnings rose to 57 cents per share in the second quarter from 54 cents a share a year ago, due to hefty profits in the company’s gas pipeline business, which it said offset lower results for its sagging merchant energy business. Despite the upbeat report, the company’s stock fell slightly to $19.06 a share in late-day trading.

As several competitors struggled for their very survival Tuesday, Duke Energy reported earnings rose to 57 cents per share in the second quarter from 54 cents a share a year ago, due to hefty profits in the company’s gas pipeline business, which it said offset lower results for its sagging merchant energy business. Despite the upbeat report, the company’s stock fell slightly to $19.06 a share in late-day trading.

E&P companies that survive and profit in the continuing volatile natural gas market will have to balance growth with profitability and avoid some of the typical pitfalls that can send a company into a crisis mode, Arthur L. Smith, chairman of John S. Herold Inc. told a GasMart/Power 2002 audience in Reno, NV, last Tuesday.

E&P companies that survive and profit in the continuing volatile natural gas market will have to balance growth with profitability and avoid some of the typical pitfalls that can send a company into a crisis mode, Arthur L. Smith, chairman of John S. Herold Inc. told a GasMart/Power 2002 audience Tuesday.