Tripled

Canadian natural gas finding and development costs have tripled in the past 10 years, prompting an industry alert to guard against “hyperinflation.” The trend stood out as a surprise result of the latest in a periodic series of industry performance surveys commissioned by the Canadian Association of Petroleum Producers.

Coming off 2005 utility results in which net earnings tripled to more than half-a-billion-dollars, Berkshire Hathaway’s growth-hungry MidAmerican Energy Holdings Co. is looking at a two-fold jump in its electric utility customer base to more than 2.4 million, revenues of more than $3 billion and a total portfolio of utility energy assets exceeding $14 billion. These are the numbers Berkshire’s billionaire founder and CEO Warren Buffett spelled out in a letter to shareholders posted on the parent conglomerate’s website earlier this month.

Houston-based independent Pogo Producing Co. on Tuesday reported the strongest earnings in its history, with 4Q2005 profits nearly tripled to $114.5 million ($1.98/share), compared with $38.3 million (60 cents) in 4Q2004. For full-year 2005, Pogo’s net income was $750.7 million ($12.43/share), compared with $261.75 million ($4.10) in 2004. Pogo, which has been on the short list of possible acquisition targets, also reported year-end reserves grew by 15%, its fourteenth consecutive year of growth.

Enterprise Products Partners LP last week tripled its total ownership interest from 20% to 66% in Dixie Pipeline Co., which owns and operates a 1,300-mile propane pipeline from supply areas in Texas, Louisiana and Mississippi to markets throughout the southeastern United States.

Enterprise Products Partners LP on Monday said it had tripled its total ownership interest from 20% to 66% in Dixie Pipeline Co., which owns and operates a 1,300-mile propane pipeline from supply areas in Texas, Louisiana and Mississippi to markets throughout the southeastern United States.

Enterprise Products Partners LP, which merged with GulfTerra Energy Partners LP last year, more than tripled its net income in the fourth quarter, reporting earnings of $115.4 million (28 cents/unit), compared with $34.2 million (13 cents) in 4Q2003. For the year, Enterprise earned $268.3 million (87 cents/unit), compared with $104.5 million (41 cents) in 2003.

Enterprise Products Partners LP, which merged with GulfTerra Energy Partners LP last year, more than tripled its net income in the fourth quarter, reporting earnings of $115.4 million (28 cents/unit), compared with $34.2 million (13 cents) in 4Q2003. For the year, Enterprise earned $268.3 million (87 cents/unit), compared with $104.5 million (41 cents) in 2003.

The planned capacity additions announced by merchant power plantdevelopers for the U.S. market have more than tripled in less thantwo years, confirming that power suppliers are “aggressivelyresponding” to market demands for more generation and greatersystem reliability, according to the Electric Power SupplyAssociation (EPSA).

Despite advances in drilling technology that tripled the waterdepth record for gas and oil production to 5,376 feet in 1997,near-term gas production may suffer because of low 1998 gas pricesdue in part to the crude oil price collapse.