Phillips Petroleum shareholders approved the proposed acquisition of Tosco Corp. during a special meeting yesterday. The acquisition is expected to close by the end of the third quarter, pending additional regulatory reviews and other customary closing conditions. Phillips shareholders also approved amending Phillips’ charter to increase the number of authorized shares of common stock from 500 million to 1 billion. “This paves the way for Phillips to become a premier competitor in the domestic refining, marketing and transportation business, and to realize the competitive advantages of being fully integrated,” said CEO Jim Mulva, who also updated shareholders on the company’s earnings expectations. “We expect first-quarter net operating income to be up 75-85% from the same period last year. The expected increase is due primarily to increased production as a result of the company’s second-quarter 2000 Alaskan acquisition. For the year 2001, we expect to meet or exceed analysts’ consensus earnings estimates.” The company expects total worldwide production to be in the range of 820,000 barrels of oil equivalent (BOE) per day for the quarter, versus 489,000 BOE per day for the first quarter of 2000.

Mirant CEO Marce Fuller reaffirmed the company’s first quarter earnings projection but announced that the company would take a $295 million charge because of unpaid bills from California utilities. As of March 31, the total amount owed to Mirant from the Cal-ISO and the CalPX, and indirectly from the California utilities, was $392 million. Mirant’s first quarter estimate of 46 to 48 cents per share included the assumption that the company would take significant provisions related to the uncertainties in the western U.S. energy markets. “Mirant still expects to meet or exceed its previous guidance for first quarter 2001 and throughout the year,” Fuller said. “The provisions to be taken by the company through the first quarter of 2001, combined with the provisions taken last year, reflect our current assessment of the risks associated with the California market situation.” Separately, Mirant yesterday joined forces with Apex Industrial Park to dedicate and break ground for the company’s 1,100 MW natural gas-fired Apex Generating Station. The plant will be located on 90 acres within the park.

Cross Timbers Oil Co.’s board of directors declared on Wednesday a three-for-two stock split of its common shares subject to stockholder approval at the company’s annual meeting on May 15, 2001. The board also said it intends to maintain the quarterly cash dividend at one cent per share after the stock split, effecting a 50% dividend increase. “This is Cross Timbers’ fourth three-for-two stock split since 1997 — a remarkable achievement,” said CEO Bob R. Simpson. “The board’s decision reflects its confidence that our sustained record performance, exceptional internal growth profile and increasing asset values will continue to fuel outstanding stock performance.” Assuming stockholder approval, each shareholder of record at the close of business on May 23 will receive one extra share for every two shares held.

Precision Drilling Corp. reported on Wednesday that due to its strong drilling program it now expects to beat Thomson Financial/First Call’s consensus estimate for the first quarter 2001 by 16%. The Calgary-based company expects earnings per share to be in the neighborhood of C$1.44, compared to the consensus estimate of C$1.24. The expected EPS is also 55% than the same period posted last year. Revenues are also expected to blow out last year’s equivalent. Precision forecasts that revenues for the first quarter will be C$610 million, more than 59% higher than the first quarter of 2000. Currently, the First Call estimate for the entire year is C$3.74. “Based upon existing market conditions and normal weather patterns, this estimate is within the range of the corporation’s current expectations,” Precision stated. The company said its actual results will be posted on May 9.

TransCanada Pipelines Limited, through its wholly-owned subsidiary, TransCanada Energy Ltd., yesterday announced plans to build the Bear Creek cogeneration project, an 80 MW natural gas-fired cogeneration power plant near Grande Prairie, Alberta. The facility will provide electric power and steam services to Weyerhaeuser Co.’s Grande Prairie pulp mill and will use natural gas as well as biomass-derived steam from the mill to provide power to all eight main manufacturing facilities of Weyerhaeuser’s Alberta operations.

TransAlta Corp. yesterday broke ground on the site of its US $210 million, 248 MW, natural gas-fired combined-cycle power plant near Centralia, WA. The new plant will be on the site of TranAlta’s 1,340 MW Centralia coal-fired power plant, pending final approvals. The facility will begin operating by July 2002.

Remington Oil and Gas announced a new discovery on West Cameron Block 170 off the coast of Louisiana in the Gulf of Mexico. The No. 4 exploratory well logged 77 net feet of apparent oil and gas pay in four sands in a previously untested fault block. The company also reported that it is increasing its 2001 capital spending forecast by $24 million to keep up with its increased exploration and production activities. The company expects first quarter 2001 oil and gas production volumes to increase approximately 34% over fourth quarter 2000 volumes of 5.2 Bcfe. Based on new discoveries announced in 2001, barring no unexpected service industry delays, Remington believes its production volumes for the year will now exceed 2000 levels by 40%. “Most of the discoveries announced in 2000 are now on production. East Cameron 305 and 345/360 are scheduled to come on production in the summer and Eugene Island 397 early in 2002,” said CEO James A. Watt. “We continue to have success with the drillbit in all three of our core areas based on 3-D seismic data. Based on success so far this year, we anticipate a 2001 capital program of approximately $90 million, or 36% above our originally approved $66 million budget. This capital program will be funded from cash flow.”

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