SOURCE: Rothman Research

Rothman Research

August 27, 2010 08:52 ET

Shareholders Reports on Sempra Energy and EQT Corporation -- Summer Heat Warms Profits

JOHANNESBURG, SOUTH AFRICA--(Marketwire - August 27, 2010) - undertakes intensive analysis of the gas utilities industry and provides systematic research on Sempra Energy (NYSE: SRE) and EQT Corporation (NYSE: EQT). Sign up today on to get access to these free reports and more.

The hotter than normal summer proved to be a boon for both the gas and coal utilities industries as consumers used more electricity to power their air conditioners this year. However, when usage begins to slow this autumn alongside falling temperatures, electricity generators will look to the production option with the lowest operating cost. While this has typically been coal throughout the past, the plummeting price of natural gas could elicit an energy swap resulting in an increased demand for natural gas. This could be both good and bad for the Gas Utilities sector. is a source for investors seeking free information on the gas utilities industry; investors and shareholders of Sempra Energy and EQT Corporation are encouraged to sign up for free at

At around $4/million BTU, gas prices have reached a periodic low. This is primarily due to booming production that rivals levels seen in the 1970s. One reason large scale production is taking place without regard for negative pricing effects are because some companies have reduced operating costs far enough to still achieve good margins despite a low price. Another is due to use-it-or-lose-it clauses written into the leases of land with horizontal shale reserves. Generally, an increase in demand for gas-based electricity will force the per BTU price of natural gas up and lower production levels. However, with production predicted to remain at historic levels, it is hard to predict how the sector will fare.

As natural gas prices are more directly linked to overall electricity prices, consumers should benefit from the falling prices. Unfortunately, multi-faceted electricity generators that rely on both coal and gas to create electricity will suffer a negative impact on their margins as coal prices are predicted to remain steady.

During the second quarter 2010, Sempra Energy posted earnings of $222 million whilst EQT Corporation a 13% surge in profits to $30 million as compared to the same quarter last year. provides technical analysis and free downloadable research reports on Sempra Energy and EQT Corporation by signing up now at or

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