Producers suffered a major setback when the Bush administration, in a concession to Florida, announced last week that it will radically scale back plans to allow exploration and production activity in the oil- and natural gas-rich eastern Gulf of Mexico.
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Earnings Up, Kinder Morgan To Announce Acquisitions Soon
With plans to announce “significant, accretive acquisitions” in the next one to two months, Kinder Morgan Inc. (KMI) predicted last week that it will meet or beat the consensus 2001 estimates for the second quarter and the rest of the year, expecting to do 40% better in earnings per share (EPS) over 2000 because of strong internal growth.
OH Sees 9-18% Summer Power Reserve ‘Cushion’
With system reliability and power reserve margins becoming catch-phrases nationally going into summer’s hottest months, the Ohio Consumers’ Counsel (OCC) has gone on the record to allay consumers’ fears, saying it is “reasonably optimistic” the state’s electric system can meet power demand this summer.
Kerr-McGee Adds 3 Million Deepwater Acres In Six Months
As oil and gas exploration continues in high gear mode to erase the supply/demand imbalance, Kerr-McGee Corp. reported that it has increased its international position in high potential trends by nearly 10% so far in 2001. The Oklahoma City-based company said it has acquired interests in more than 3 million additional deepwater acres around the globe.
NY IPPs Call For Unified Northeast Energy Market
The creation of a seamless, multi-state energy market between New York, New England and the Mid-Atlantic states is but one of several steps utilities and state and federal agencies should consider implementing to make sure that the Empire State avoids an energy crisis similar to California’s, says the association that represents New York’s independent power producers.
CEO: DTE 2Q, 2001 Earnings on Track
DTE Energy Co. clarified its 2001 earnings predictions on Friday to include restructuring impacts and goodwill amortization related to its recently completed merger with MCN Energy Group, saying it expected “significant variations in quarterly earnings” because of the suspension of fuel and purchased-power cost recovery as part of Michigan’s restructuring legislation in 2000, but expected earnings to remain on track.
EIA Continues to Chart Downward Spiral For Gas Prices
Although certain pockets of the country that use large amounts of gas for power generation may see some increase in natural gas prices over the next couple of months, the overall likelihood of any significant summer jump in gas prices now seems remote, the Energy Information Administration (EIA) recently concluded. With natural gas storage injections hitting record highs in April through June, EIA sees average wellhead prices in the third quarter continuing on a downward slope, averaging $3.40/Mcf.
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As FERC Refund Talks End, Davis Says $8.9B is Non-Negotiable
California Gov. Gray Davis said Friday the the state’s $8.9 billion estimate for refunds owed to its electric customers isn’t negotiable, but he will to consider alternative forms of payment other than straight cash refunds, such as the re-negotiation of long-term power contracts.
Entergy to Beat 2Q Consensus by 5%, Divests UK Plant
Despite decreased earnings from its wholesale operations and the impact of normal weather, Entergy Corp. indicated last Thursday that it is confident its second quarter 2001 earnings will be at least 5% higher than the current published First Call earnings consensus of $0.91 per share. The company attributed the strong results to “excellent performance” in its competitive businesses.