Kerr-McGee Corp. has entered into sales agreements with multiple parties to sell some noncore assets located in Texas, Oklahoma, Louisiana, Colorado and Wyoming. The sales, which are expected to net the company about $330 million, are part of a previously announced divestiture program of select U.S. onshore oil and natural gas properties. Estimated proved reserves associated with the divestitures are approximately 48 million boe, of which 50% are undeveloped, and production from the divestiture properties currently approximates 8,000 boe/d, according to Kerr-McGee. There are approximately 2,300 wells and 100 fields included in this program, which is part of the company's effort to high grade its oil and natural gas portfolio by divesting selected lower-growth properties. The proceeds include estimated proceeds from a November auction of some "minor value" properties, cash from a recently closed property trade and a previously announced sales agreement with Encore Acquisition Co. The transactions are expected to close by year's end.
Transcontinental Gas Pipe Line Corp. said it executed precedent agreements for the Potomac Expansion Project with Washington Gas Light Co., Baltimore Gas and Electric and Columbia Gas of Virginia to transport a total of 165,000 Dth/d of gas from receipt points with Pine Needle LNG and East Tennessee Natural Gas in North Carolina to delivery points in Northern Virginia and Maryland beginning as early as November 2007.
PG&E Corp. reported a 22% increase in third quarter earnings compared to the same period last year. Net income for the most recent quarter ended Sept. 30 according to "generally accepted accounting principles (GAAP)" was $252 million, or 65 cents/share, compared to $228 million, or 53 cents/share, for the third quarter of 2004. The holding company for Pacific Gas and Electric Co. reaffirmed its 2005 earnings guidance in "the upper end" of the $2.20-$2.30/share range, and also for the 2006 earnings, which is in the range of $2.35-$2.45/share. On a non-GAAP basis, earnings quarter-to-quarter were down slightly with the third quarter 2005 being $239 million, or 62 cents/share, compared with $242 million, or 57 cents/share, for the same period last year. "Earnings from operations excludes certain non-operating items reported in GAAP net income," PG&E said in its announcement of results, noting that included in the third-quarter GAAP net income was 3 cents/share associated with tax adjustments related to the former PG&E merchant energy operator, National Energy Group, who operations were discontinued as a PG&E entity.
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