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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Rex Martin who wrote (6290)	1/28/2002 11:25:14 PM
From: Gator II	Read Replies (1) \| Respond to of 206114

Elstein has written another article about HC. Management to host a conference call to provide guidance for 2002: Hanover Is Reviewing Accounting Related to Business Partnership By AARON ELSTEIN Staff Reporter of THE WALL STREET JOURNAL ONLINE Hanover Compressor Co.'s shares fell more than 12% Monday after the company said it was "reviewing" its accounting for an off-balance-sheet partnership. The partnership, Hampton Roads Shipping Investors II LLC, was the subject of a Heard on the Street column in The Wall Street Journal on Friday. The column said some investors were concerned whether Hanover's accounting treatment of the partnership inflated the company's revenue and earnings figures during periods when its executives sold millions of shares and the company raised $170 million in convertible debt. Trading in Hanover's stock was halted Friday. Early Monday, the Houston company said it has recorded $19.6 million of revenue and $3.2 million of net income from the Hampton Roads project. The company said it is "reviewing the transactions of this joint venture and the related accounting." The company says it will hold a conference call "in the near future" to discuss the matter as well as to provide updates on its cost of capital, operating leases, credit statistics and working capital objectives. It will also provide financial guidance for 2002. Gary Kraut, a spokesman for Hanover Compressor, said a date for the call hasn't been set yet. Merrill Lynch analyst Mike Clark, who put his "accumulate" rating of Hanover "under review" Friday, declined to comment on the company's announcement Monday. Hanover's shares have fallen more than 40% this month amid investor concerns over falling energy prices, the company's partnerships, and its potential exposure to Enron Corp., the collapsed energy-trading concern that owned a 6.2% stake in Hanover as late as November. On Monday, Hanover said that its total credit exposure to Enron and its affiliated companies is less than $300,000. Shares in Houston-based Hanover, which makes pumps to move natural gas from wells and through pipelines, fell $2 to $14.05 in New York Stock Exchange trading Monday. Write to Aaron Elstein at aaron.elstein@wsj.com2 URL for this article: online.wsj.com Updated January 28, 2002 5:13 p.m. EST