----- Forwarded by Stanley K Horton/HOU/Dynegy on 04/29/02 04:09 PM -----
                                                                                                                                                    
                      RJ EnergyGroup                                                                                                                
                      <RJEnergygroup@ec        To:       "'RJ Customer'" <rj@rjf.com>                                                               
                      m.rjf.com>               cc:                                                                                                  
                                               Subject:  U.S. Natural Gas Supply is Falling Faster Than Even We Thought                             
                      04/29/02 09:08 AM                                                                                                             
                                                                                                                                                    
                                                                                                                                                    






 <<iEne042902b_0713.pdf>>

Raymond James Energy Stat of the Week, published 4/29/2002.

Over the past six months we have been very bullish on U.S. energy stocks
based upon our conviction that U.S.

natural gas supply would deteriorate sharply with the reduced drilling
activity. As publicly-traded U.S. E&P

companies have begun to announce their first quarter production results,
the supply deterioration has been shocking even to us. Specifically, with
about one-third of total U.S. gas production represented, it appears that
first quarter 2002 U.S. gas production is trending down about 3%
sequentially and more than 6% on a year-over-year basis. As we move into
the second quarter, we think we will continue to see sequential declines in
U.S. gas production and a growing year-over-year gap in U.S. gas
production. Since a supply problem is much harder to correct than a demand
problem, it appears that our optimism on U.S. gas prices has not only been
well founded, but may even prove to be too conservative. In other words,
this falling U.S. natural gas supply is an extremely bullish data point for
U.S. gas prices as we move into the summer and especially going into next
winter.


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                                                        Angela Guo





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(See attached file: iEne042902b_0713.pdf)