Belllevue, WA-based Puget Energy, holding company for the combination utility, Puget Sound Energy (PSE), announced late Wednesday its earnings for the third quarter were reduced by about half of the results for the same period last year, and that the holding company plans to sell 15 million shares of common stock to fund utility operations and reduce short-term debt tied to a nonutility merchant construction business. Puget shares were selling at $20.85 last Thursday. Puget Energy announced that its net income for the third quarter ended last Sept. 30 was $5.9 million, or 6 cents/diluted share, compared with $11.1 million, or 11 cents/share, for the same period in 2004. PSE reported net income from utility operations was $6.2 million, compared to net income of $9.6 million for the third quarter last year. "We are taking the necessary operational and financial steps to meet future load requirements and provide a reliable, low-cost energy supply to our growing region," said Puget Energy CEO Stephen Reynolds.
Enbridge Energy Partners agreed to sell 627 miles of gas gathering, 121 miles of intrastate pipeline and five gas treating plants in Texas and Oklahoma for $106 million to San Antonio-based TexStar Field Services LP. The sale is expected to close in the fourth quarter. The assets included 327 miles of gas gathering pipeline, 121 miles of transmission pipeline and a gas treating facility located in South Texas. Also included is a 300-mile northeastern Texas gas and products gathering system, the Eustace gas processing and treating plant and three other gas treating facilities.
Oklahoma City-based Devon Energy Corp. has cut its fourth quarter production guidance by about 3 million boe because of the ongoing impact from Hurricanes Katrina and Rita. Devon initially forecast production in both the third and fourth quarters of 2005 to be about 56 million boe. Because of the hurricanes, Devon subsequently lowered its 3Q2005 companywide production estimate to 54.6 million boe. However, after considering the "ongoing impact" of the storms, Devon now expects 4Q2005 production to be about 53 million boe. The producer has restored 50,000 boe/d of offshore oil and gas production pre-Katrina. Another 20,000 boe/d is expected to be restored by the end of the year. Restoring the remaining volumes is dependent upon "further damage assessments and repairs to Devon and third-party-operated facilities," it said. Volumes expected to remain suspended beyond year-end represent 10-15% of Devon's Gulf production, or less than 3% of its company-wide production.
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