Riding the wave of higher natural gas and power demand andprices, a number of utilities and pipelines have announced thatnew estimates for April-to-June earnings are much higher thanpreviously projected. Sempra Energy, Reliant Energy and Williamsall have released estimates that show an increase in expectedearnings in the second quarter. Sempra also AGL Resources, whosefiscal year third quarter ended June, 30, also expects to exceedestimates for the time period. The companies in part cite greatermargins on gas and power sales as reason for the increase.

Sempra Energy’s First Call consensus estimate for the secondquarter was $0.45 cents per share, and $1.89 per share for the fullyear. Due to better-than-expected results in its wholesale energycommodity trading unit, the company now expects $0.55 cents pershare, and $1.95 per share respectively.

Sempra used to rely on its two regulated California utilities,Southern California Gas and San Diego Gas & Electric for themajority of its earnings. With the expansion of its unregulatedbusiness activities, Sempra believes earnings will fluctuate morefrom quarter to quarter.

Reliant Energy has revealed it expects a “substantial” increasein its earnings in the second quarter over the same period lastyear. The company expects 15% to 20% higher earnings than analystshad predicted. For the same period last year, Reliant had adjustedearnings of $123 million, or $0.43 per share. The company pointedto its growing generation portfolio, strong commercial management,and increased trading margins as key reasons for the rise inearnings.

“Our strategy of building strong business positions in selectedregions of the U.S. allows us to capitalize on the growthopportunities of different markets,” said Reliant CEO SteveLetbetter.

AGL Resources also made public last week that it will exceedanalysts’ estimates for this fiscal third quarter as well as forthis full year and next year. Analysts had estimated that for thethird quarter of this fiscal year that AGL Resources would post at$0.21. AGL now expects to break that mark, attributing the rise toaggressive cost management, growing customer base, and systemmodernization.This would be the third consecutive quarter inwhich the company exceeded analysts’ predictions.

Tulsa’s Williams also projects that its second quarter profit isgoing to be stronger than analysts’ initial predictions. Thecompany says it is on track to go over its $0.27/share firstquarter mark. Company officials account for the increase in part bypointing towards the strong energy environment where natural gasprices, natural gas liquids processing margins, and refiningmargins are all significantly higher than last year.

“This is the third consecutive strong quarter for our energybusinesses. I continue to believe that we are seeing the benefitsof the business plans we have developed and implemented,” saidWilliams Chairman Keith Bailey. “As we look at the forward marketsit is certainly well within the realm of possibility that thesecond half of the year could mirror the first.”

Reliant, Sempra and AGL will all release their Earningsstatements on July 27. Williams plans on releasing its secondquarter statement on July 28.

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