----- Forwarded by Stanley K Horton/HOU/Dynegy on 06/05/02 07:49 AM -----
                                                                                                                                                    
                      James Mullins                                                                                                                 
                      <JMullins3@ECM.RJ        To:                                                                                                  
                      F.com>                   cc:                                                                                                  
                                               Subject:  Raymond James Energy Daily Update - Wednesday 6/5/02                                       
                      06/05/02 07:48 AM                                                                                                             
                                                                                                                                                    
                                                                                                                                                    






   Wednesday 6/5/02
   Raymond James Energy Daily Update

   FOR INTERNAL USE ONLY

   Energy Price Summary (Close Tuesday 6/4/02):
   Oil (WTI) - $25.33, up $0.25
   12-Month Oil Futures Strip - $24.70, up $0.21
   Natural Gas (HHUB) -$3.33, up $0.09
   12-Month Natural Gas Futures Strip - $3.65, up $0.06
   1% Residual Oil (on a MMBtu basis) - $3.91, up $0.04
   London Crude Oil - $24.24, down $0.21 (so far this morning)

   1) Energy Stocks Could See Weakness Over Next Month; Present Buying
   Opportunity.
      From a technical analysis standpoint, the oilservice group looks like
      it will trade sideways to down over the next month.  On the
      fundamental analysis side, there are no visible positive catalysts
      expected until July, when we should see: 1) a rollover in API
      inventories, 2) lower natural gas injections with warmer weather, and
      3) further evidence of natural gas supply declines in second quarter
      natural gas production data.
      While the oil markets have typically seen builds in total petroleum
      inventories into July, it has experienced larger-than-expected builds
      over the past few weeks.  The energy market is likely to view this as
      a very bearish sign.
      We should note that a possible contributor to these abnormal builds
      is that Iraq was exporting as much oil as possible 45 days ago before
      it cut off April/May exports in protest to the U.S. and Israel.
      Bottom line: The charts and fundamentals suggest we could continue to
      see some weakness in both oil prices and energy stocks over the next
      4 weeks.  Based upon strong longer-term (6 to 9 month) fundamentals,
      however, we believe investors should take advantage of any potential
      weakness over the next month and buy the stocks in anticipation of
      meaningful year-end upside.

   2) The API reported that total petroleum inventories increased 8.3
   MMBbls, to 669.0 MMBbls for the week ended May 31, 2002.
      The average consensus range called for a 0.5 MMBbl draw to a 0.8
      MMBbl build in total inventories.  This build in total inventories is
      very bearish for the oil market.
      Total inventories built largely as a result of much higher crude
      supplies, as well as greater distillate supplies.
      Total petroleum inventories are currently 27.2 MMBbls (~4%) above
      levels one year ago, and continues to climb above the five-year
      average.
      Motor gasoline inventories decreased by 0.8 MMBbls to 217.7 MMBbls
      last week, and are now 8.3 MMBbls above last year at this time.
      Distillate fuel inventories rose by 2.8 MMBbls to 127.2 MMBbls last
      week.  Distillate inventories are now 20.0 MMBbls above last year at
      this time.
      U.S. refinery operations were at a 93.4% utilization rate, which was
      1.1% higher than last week's 92.3% rate, and much higher than
      expectations of an ~0.25% increase.  Total petroleum imports
      decreased slightly to 11.8 MMBbls/day.

   OILSERVICE
   3) Nabors' Re-incorporation Receives Independent Shareholder Group
   Endorsement
      Nabors Industries (AMEX:NBR/$40.00/Strong Buy) announced that
      Institutional Shareholder Services (ISS) has recommended that Nabors
      shareholder vote in favor of the re-incorporation in Bermuda.  ISS is
      the leading independent provider of proxy analysis and voting
      advisory services.
      Yesterday, Nabors' Chairman and CEO Gene Isenberg repeated his belief
      that the proposed re-incorporation will result in significant tax
      savings and other long-term benefits for the Company that will
      outweigh the one-time capital gains taxes that investors will have to
      pay if the move is approved.
      A lawsuit that has been filed to try to block the vote appears to be
      innocuous, as it is not even on the court docket for a scheduling
      hearing until September and no motions for injunction have been filed
      yet.
      A special stockholders meeting to vote on the re-incorporation has
      been scheduled for June 14(superscript: th).  We currently expect
      that the proposal will pass the shareholder vote.

      E&P

   4) Spring Fire Stops Short of Evergreen Resources'
   (NYSE:EVG/$43.90/Strong Buy) Coal Bed Methane Operations in Southern
   Colorado.

   ?       Evergreen reported that the Spring fire in southern Colorado's
   Las Animas County did not reach the company's coal bed methane
   operations in the Raton Basin.

   ?      The fire crossed into Evergreen's acreage but stopped one and a
   half miles short of the company's nearest well location.

   ?      As a precaution, Evergreen shut-in 69 gas wells in the Lorencito
   Canyon area.  These wells were producing at a combined rate of 6.2
   million cubic feet (MMcf) of gas per day prior to being shut-in at
   approximately 5:00 p.m. (MDT), Sunday, June 2.

   ?      This daily production rate represents approximately 5% of
   Evergreen's current total gross sales of 124 MMcf of gas per day.

   ?      Production from the Lorencito Canyon area was brought back on
   line yesterday at about 1:00 p.m. (MDT) and is expected to reach its
   prior average rate within the next several days.

   ?      According to latest reports, the Spring fire is mostly contained.
   Evergreen has made its produced water available to assist fire-fighting
   efforts in the area, and  does not expect future curtailments of its
   production unless weather and fire conditions change significantly.

   5) ONEOK (NYSE:OKE/$20.78/NR) Sells Equity Interest in Magnum Hunter
   Resources (Amex:MHR/$7.31/Buy).
   ?       ONEOK announced it has sold its remaining equity interest in
   MHR, representing 4.9 million shares (~7%) of Magnum Hunter's 70 million
   shares outstanding.

   ?      The $35.8 million proceeds from this sale will be used to reduce
   ONEOK's outstanding commercial paper.
   ?      ONEOK, Inc. is a diversified energy company involved primarily in
   oil and gas production, natural gas processing, gathering, storage and
   transmission in the mid-continent areas of the United States.

   6) Vintage Petroleum (NYSE:VPI/$11.65/Buy) Reiterates Commitment to
   Business Plan and Reduction Of Indebtedness; Rejects Restructuring
   Proposal.

   ?       VPI believes that its current depressed stock price is
   attributable primarily to its position in Argentina, which has
   experienced a series of economic and political shocks, and Vintage's
   relatively high leverage, which the company is committed to reducing.

   ?      Vintage recently announced several initiatives to reduce
   leverage, including the intention to reduce the Company's aggregate
   indebtedness by $200 million by year-end 2002 through a combination of
   the sale of non-core assets and cash flow in excess of planned capital
   expenditures

   ?      In response to the BP Capital Energy Restructuring Plan submitted
   on May 15, Vintage said that it has reviewed the plan, and concluded
   that it is not appropriate for the Company to pursue.  BP Capital
   currently owns ~8.9% of the outstanding Vintage common stock.

   ?      The restructuring proposal calls for the liquidation of Vintage's
   North American assets, creating a pure-play Latin American exploration
   and production company.

   7) Anadarko Petroleum Corporation (NYSE:APC/$49.88/Market Perform)
   Apparent Winner On 34 Tracts in National Petroleum Reserve-Alaska Lease.

   ?       Anadarko announced that it was the apparent high bidder on a
   total of 34 tracts in Monday's National Petroleum Reserve-Alaska Oil and
   Gas Lease Sale 2002.

   ?      Anadarko and its partner, Phillips Alaska Inc., submitted winning
   bids representing a combined total investment of $9.6 million ($2.7
   million net to Anadarko).

   ?      The 34 tracts cover more than 282,000 gross acres and are located
   primarily west of the companies' Moose's Tooth discovery.

   ?      With this sale -- the second since the federal government resumed
   leasing in the reserve in 1999 -- Anadarko's leasehold in NPR-A will
   total 277,500 net acres.


                          Raymond James Energy Group

This was prepared for informational purposes only and intended for internal
use only.  Information contained in this report was received from sources
believed to be reliable.  Raymond James & Associates assumes no liability
for inaccurate or erroneous information.  Additional information can be
obtained by calling the Houston Energy office at (800) 945-6275.