Gas deliveries to industrial customers in the third quarter of 2011 were down 3 percent from 106 million therms in 2010’s third quarter, compared to 104 million therms in 2011. Margin from industrial customers was unchanged at $6.6 million for the third quarters in both 2010 and 2011.
Gas storage business update
NW Natural’s gas storage segment reported net income of $1.2 million on net operating revenues of $6.7 million in the third quarter of 2011, compared to $1.8 million and $4.9 million, respectively, in last year’s third quarter. Results in 2011 primarily reflect first-year costs at Gill Ranch Storage, including depreciation, and low storage prices in California, and lower optimization service revenues at the company’s Mist storage operations in Oregon.
Gas reserves updateNW Natural received approval in the second quarter of 2011 from the Public Utility Commission of Oregon (OPUC) to participate in a joint venture with Encana Oil & Gas (USA) Inc. to develop gas reserves on behalf of NW Natural’s utility customers. The company is expected to invest approximately $45-55 million a year over a five-year period, for a total investment of about $250 million. The investment will cover a portion of the expected drilling costs in exchange for working interests in two sections of the Jonah Field in Wyoming. The drilling area includes both future and currently producing wells. Encana began drilling in May 2011, and the company is currently receiving gas from its interests in a section of the gas field. NW Natural’s investment at Sept. 30, 2011 was $30.9 million. O&M costs reflect Gill Ranch start-up Operations and maintenance expense was 5 percent higher in the third quarter of 2011, compared to 2010, primarily due to operating costs at Gill Ranch Storage, which became operational in late 2010. Utility O&M expense increased 2 percent in the quarter.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV