Dynegy Inc. said it intends to request a 15-day extension on filing its annual report with the Securities and Exchange Commission. The request will cover Dynegy and its two subsidiary registrants, Dynegy Holdings Inc. and Illinois Power Co. The filing is necessary for Dynegy to complete the financial statements and audit for the three companies. The re-audit of Dynegy's financial statements for 1999 through 2001 is also in the final stages of completion. The company also announced that it is continuing its efforts to refinance its current bank facilities and that its financial statements are being prepared on this basis. "Dynegy assures its stakeholders that the 2002 Form 10-Ks will be filed as soon as the financial statements and the audits are completed, which will be during this extended time period," said CEO Bruce A. Williamson. "These filings will provide our stakeholders with an accurate view of the financial reporting for previous years and the assurance that we have fully disclosed and properly accounted for our results."
Expecting growing demand for land drilling rigs, Chesapeake Energy Corp. invested $20 million in Pioneer Drilling Co., which provides drilling services to producers drilling wells in Central, South and East Texas. Chesapeake purchased 5.3 million newly issued Pioneer Drilling common shares at $3.75 per share, or 24.6% of Pioneer's outstanding common shares. Pioneer Drilling said it will use the proceeds to retire a $6 million term loan and pay remaining balances on two rigs. The remaining proceeds will be used for future growth opportunities. Pioneer Drilling's rig fleet currently consists of 24 land drilling rigs that drill in depth ranges between 10,000 and 18,000 feet, with an additional 1,500-horsepower SCR land rig scheduled for delivery on May 1 and a Cabot 1200 rig expected to be delivered in the summer of 2003.
Duke Energy closed a transaction to sell its 23.6% ownership interest in Alliance Pipeline, Alliance Canada Marketing and Aux Sable processing plant to Enbridge Inc. and Fort Chicago Energy Partners LP for US$245 million. The transaction was completed Tuesday with the exception of Duke Energy's small ownership interest related to the U.S. segment of Alliance Pipeline, which is expected to close in October and represents US$11 million in proceeds. Duke obtained the minority ownership interest in the Alliance pipeline, Alliance Canada Marketing and Aux Sable through its acquisition of Westcoast Energy in 2002.
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