An expected decline in natural gas prices over the next two years could cut away at profits for utility companies, said one analyst who lowered his earnings estimates and price targets for a number of utilities on Wednesday.
Natural gas prices rose 1.6 cents to $3.705 per thousand cubic feet in Wednesday afternoon trading, boosting the share price of a number of utility companies.
Barclays Capital analyst Gregg Orril lowered his natural gas price predictions for 2009 and 2010 to $4.10 and $6.50 per mcf, respectively, from an earlier estimate of $6.36 and $7.16 per mcf.
Subsequently, Orril cut his 2009 profit estimate for Constellation Energy Group (CEG Quote), Ameren (AEE Quote), First Energy , Edison International (EIX Quote), Dominion Resources (D Quote) and Allegheny Energy (AYE Quote)....
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