Lower Gas Prices Erode Independent Producers' 2Q Earnings,

Oil Daily, The, August, 2002

Lower Gas Prices Erode Independent Producers' 2Q Earnings, But Executives Remain Optimistic

Lower natural gas prices, combined in many cases with reduced gas production, led to another steep drop in earnings for US independent oil and gas producers in the second quarter, but industry executives are confident that demand and prices will start to turn in their favor late this year or early in 2003.

Operating income -- excluding one-time items -- fell by an average of 42% for 13 leading exploration and production companies -- Anadarko, Unocal, Devon, Kerr-McGee, Burlington Resources, Apache, Noble Affiliates, EOG Resources, Forest Oil, Ocean Energy, Pioneer Natural Resources, Newfield Exploration, and Stone Energy.

Impairment charges, writedowns and...