United

Record sales and strong growth in international networkoperations produced record financial results for UtiliCorp Unitedlast year. Earnings available for common shares were $160.5million, up 21% from $132.2 million in 1998. “A major factor in our1999 success was the 97% increase in the contribution to earningsbefore interest and taxes (EBIT) from our international networkbusinesses,” said Chairman Richard C. Green. “Results alsobenefited from a major improvement in the price of natural gasliquids, a better year in the gas marketing and trading business,and the results of our investment in Quanta Services, Inc.” Thecompany’s North America Energy Assets segment reported EBIT of$67.2 million in 1999, up $17.7 million compared to 1998. Increasedthroughput volumes, strong natural gas liquids prices and thepartial sale of an ownership interest in an independent powerproject contributed to this 36% increase in EBIT. Late in the firstquarter of 1999, a restructuring plan was implemented by Aquila GasPipeline that decreased operating expenses for the remainder of theyear. In May 1999, Aquila acquired the remaining 18% interest inAQP that it did not already own and AQP ceased trading as a publiccompany. EBIT from marketing and trading was $14.2 million, up $2.4million from 1998. Improved results in gas marketing and stronginitial results from structured finance transactions were partiallyoffset by lower results from marketing of power and hydrocarbonsand $4.7 million in costs associated with moving Aquila’s tradingoperations to downtown Kansas City. Also included in these resultswas a $19.8 million loss related to Aquila’s retail business, whichwas sold in January 2000. That business showed a loss of $6.4million in 1998. Aquila Energy sold 10.4 Bcf/d of gas last yearcompared to 9.6 Bcf/d in 1998. Power sales grew to 236.5 millionMWh compared to 121.2 million MWh

There’s a major oil and natural gas boom happening in one of themost unlikely places in the United States — northeasternTennessee.

Anyone who was complaining about a lack of winter likely hasshut up by now, and for good reason. Right on top of the first one,the eastern United States last week was bracing for its second coldsnap of the year.

Canadian natural gas exporters set their 12th consecutive annualsales record in the United States during the contract year thatended Oct. 31. Exports climbed to 3.26 Tcf last year, according toa scorecard kept by the National Energy Board. The new recordimproved by 5% on the previous high of 3.1 Tcf set in the 1997-98contract year.

Canadian natural-gas exporters set their 12th consecutive annualsales record in the United States during the contract year thatended Oct. 31. Exports climbed to 3.26 Tcf last year, shows ascorecard kept by the National Energy Board. The new recordimproved by 5% on the previous high of 3.1 trillion set in the1997-98 contract year.

The Public Service Commission of West Virginia (PSC) gave itsblessing yesterday to the proposed purchase of UtiliCorp United’s WestVirginia Power division by Allegheny Power, the energy deliverycompany of Allegheny Energy Inc. The $75 million purchase wasannounced last September (see Daily GPI, Sept. 10).Before completion, the Security and ExchangeCommission still must give its approval. Allegheny expects this to bedone later this month. The purchase has already received the go-aheadfrom the Federal Energy Regulatory Commission and the Federal TradeCommission.

Even with continuing mild weather and an indifferent screen, theEast joined the West in a united front of rising prices Wednesday.Gains were fairly uniform across the board, ranging from about anickel to a dime. CIG, which had been lagging considerably behindother Rockies pipes Tuesday, was playing catch-up Wednesday with anincrease of a little more than a dime after an eastward-moving coldfront blanketed much of the state of Colorado in snow.

Liquefied natural gas imports to the United States continued onthe upswing yesterday with Coral Energy’s announcement it is buyinga whopping 29 Bcf in 11 cargoes FOB from Oman LNG LLC for shipmentin 2000 and 2001. The LNG will be loaded at Oman LNG’s plant atQalhat, Sultanate of Oman, for delivery into CMS Energy Corp.’s CMSTrunkline LNG terminal in Lake Charles, LA. Coral chartered thevessel LNG Arzew from Shell Bermuda (Overseas) Ltd. to carry theLNG. Terms of the agreements were not released. A Coral spokesmansaid no other details were available about the transaction.

Forcenergy Inc. of Miami said its bankruptcy reorganization planwas approved Oct. 22 by the United States Bankruptcy Court for theEastern District of Louisiana. A confirmation hearing is scheduledfor Dec. 13. On Nov. 16 the bankruptcy court extended the timeperiod for which only the company has the exclusive right to file aplan of reorganization. No other plan has been submitted or can besubmitted during the company’s exclusivity period.