EOG Resources and Burlington Resources announced a deal to swapproducing properties with about 40 Bcfe of gas (or 6.5 million bblof oil equivalent) in proved developed reserves. The oil and gasproperties EOG will receive are located in the Permian Basin ofsoutheast New Mexico and West Texas. Burlington will receiveprimarily gas properties centered in its operating areas of theAnadarko Basin in northwest Oklahoma and Hemphill County, TX.

Unocal said it expects adjusted per share earnings of $1.40 to$1.50 for 2000 with a return on capital employed (ROCE) in the 8%to 9% range and discretionary cash flow (DCF) of $6.30 to $6.70 pershare. The forecasts for earnings, ROCE and DCF assume an averageWest Texas Intermediate price of $21.50 per barrel of oil and aHenry Hub natural gas price of $2.55/Mcf. This forecasts alsoexcludes projected earnings of $12 million to $24 million for theUnocal’s agricultural products segment, which is expected to besold in 2000. The base case WTI price is significantly below thecurrent Nymex quote, and the company said it expects continuedvolatility in 2000, making accurate forecasting difficult. Unocal’sadjusted earnings will change 14 cents per share for every $1change in its average worldwide price of oil and 7 cents per sharefor every 10-cent change in the company’s average Lower 48 naturalgas price. The company has kept its capital spending flat in 2000despite a $350 million increase in discretionary cash flow in thebase case. Unocal is forecasting capital expenditures of $1.2billion to $1.3 billion. This spending level includes capital forconsolidated subsidiaries.

In what the parties are calling “an historic partnership,”Southern Co., the Alabama Municipal Electric Authority (AMEA),FuelCell Energy and Mercedes-Benz U.S. International, Inc. (MBUSI)announced a joint venture in which a Mercedes-Benz plant inTuscaloosa, AL will be powered by a $2 million, 250 KW fuel cell.The project, including installation and operation, is expected tobe completed within a year. The objective is to study theperformance of new technology to further the advancement of fuelcells and other “environmentally-friendly energy sources,” thepartnership said in a statement. The fuel cell plant will operatefor at least one year, and the companies may agree to continue tothe project. Southern Co. and AMEA have options to negotiateexclusive arrangements for the sale, distribution and service ofFuelCell Energy’s commercial power plants elsewhere. Southern Co.,AMEA and FuelCell Energy will provide funding for the fuel cellpower plant, and Southern Co. will serve as project manager. MBUSIwill provide the resources and venue for the demonstration site tosimulate actual field operating conditions during the project.

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