----- Forwarded by Stanley K Horton/HOU/Dynegy on 03/25/02 11:22 AM -----
                                                                                                                                                    
                      RJ EnergyGroup                                                                                                                
                      <RJEnergygroup@ec        To:       "'RJ Customer'" <rj@rjf.com>                                                               
                      m.rjf.com>               cc:                                                                                                  
                                               Subject:  Why Are Gas Prices So High?                                                                
                      03/25/02 07:57 AM                                                                                                             
                                                                                                                                                    
                                                                                                                                                    






 <<iEne032502b_1631.pdf>>

Raymond James Energy Stat of the Week, published 3/25/2002.

With the recent surge in U.S. natural gas prices many analysts are
scratching their heads in disbelief. Of course there will continue to be
volatility, but we believe these higher gas prices are not only
sustainable, but will likely move up through the summer (similar to what
happened in 2000). For the past two months it has become very evident that
U.S. natural gas supply/demand on a weather-adjusted basis is much tighter
than the same time last year. The market has finally begun to realize the
extent of this tightness, as more "normal" weather over the past several
weeks has removed a substantial amount of the natural gas storage overhang.
This shift in supply/demand should become even more evident as we move into
the early part of the injection season in April/May. Look for summer gas
injections to be down 30% to 50% from last year's numbers. This should be
the bullish driver of summer natural gas prices.

Next week, we should have even more bullish gas news, as the preliminary
numbers from our first quarter U.S. E&P production survey are likely to
surprise many on the Street. Stay tuned....


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If you have further questions, please contact any of the following members
of the Raymond James Energy Team at 800-945-6275 (Houston).

Research Team

Oilfield Service        E&P                     Calgary Energy

Marshall Adkins Wayne Andrews           Ken Faircloth

John Tasdemir   John Tysseland          Gordon Gee

Jim Rollyson    Jeff Stultz             Roger Serin

Matthew Burrus  James Mullins           Andrew Bradford

John Freeman                                    Grant Daunheimer

                                                        Angela Guo





Fixed Income

Jon Kyle Cartwright

(Florida Office)

727-573-8366

Investment Banking Team

Houston         Dallas          Calgary

Howard House    Allen Lassiter          Naveen Dargan

Steve Grant             Mark Huhndorff          Ed Bereznicki

Ron Montalbano  Scott McNeil            Jason Holtby

Michael Ames    Wes Martin                      David McGorman

John Sterling   Kevin Palma                     Igor Falaleyev

Gig Hordes                                              Caroline Troy

Vikram Singh                                    Kevin Smith



Office Locations

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5847 San Felipe, Suite 720            2001 Ross Avenue, Suite 3500

Houston, TX  77057                  Dallas, TX  75201

(800) 945-6275  FAX (713) 789-3581      (800) 393-1314  FAX (214) 720-1315

(713) 789-3551  FAX (713) 266-4117

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888-477-6451                            High Grade Trading 800-248-8863
ext. 8336

403-509-0536                        High Yield Trading 800-448-6623

                                    Fixed Income Research (727) 573-8366

(See attached file: iEne032502b_1631.pdf)