Unfavorable

Citing unfavorable market conditions, BP plc reported decreased earnings in the second quarter relative to the second quarter of 2001. Nevertheless, the company added that “performance and growth [is] firmly on track,” and increased the company’s quarterly common stock dividend to $6 from $5.50 at this time last year.

Almost four months after its takeover bid of NewPower Holdings Inc. was scuttled due to unfavorable court rulings, Centrica plc announced last week that its subsidiary, Energy America LLC., has entered into an agreement to acquire the Ohio and Pennsylvania natural gas customers and other specified assets of NewPower for an estimated total consideration of $21.85 million. The United States Bankruptcy Court for the Northern District of Georgia accepted Centrica’s offer over Vectren Corp.’s late June offering of $16.8 million for the company’s Ohio gas customers (see NGI, July 8).

If FERC should issue an unfavorable rehearing decision on theproposed MarketLink expansion, a Williams official yesterday saidthe company will ask FERC to sever the project from the proposedSupplyLink expansion and Independence Pipeline projects.

There’s no doubt about it, times are tough in the midstream gasbusiness. Depressed NGL prices and unfavorable margins have kept atleast one player from selling its assets while the same factorscaused another to seriously rethink the wisdom of a recentpurchase. Executives and analysts predict a lot more horse tradingof properties as companies look to rationalize assets and buildpositions for better times (hopefully) ahead.