ANR Pipeline received Federal Energy Regulatory Commissionapproval to offer two, new flexible transportation servicesspecifically tailored to meet the needs of electric-generationcustomers. The new firm and interruptible transportation services,FTS-3 and ITS-3, respectively, feature variable hourly flows, shortnotice start-up and more delivery flexibility than are provided bytraditional services. “The primary market for these services iselectric generators, including new peaking plants that often favorusing clean-burning natural gas but require the ability to start-upand shut down on shorter notice than is provided by the normalnomination and scheduling process,” said ANR President Jeffrey A.Connelly. “Our new services are intended to meet the requirementsof these shippers for greater flexibility in managing theirtransportation needs.” For more information on the new services,contact an ANR marketing representative via ANR’s Web site atwww.anrpl.com or by calling 1-800-8-ASK-ANR.
San Diego-based Sempra Energy’s first quarter earnings were up14% over the first quarter last year, mainly because of hefty gainsin its trading and international businesses. Its two largeCalifornia-based based utilities’ earnings were collectively flat,and it continued to spill red ink in the energy services business.Unaudited consolidated net income was $113 million, or 49cents-per-diluted-share of common stock, for the first three monthsof 2000, compared to totals of $99 million and 42 cents-per-sharefor the same period last year. Revenues were up 25% — $1.5billion versus $1.2 billion in first quarter 1999. SempraChairman/CEO Richard Farman said the results put the holdingcompany for San Diego Gas and Electric Co. and Southern CaliforniaGas Co. on track to meet its three-year goal of delivering compoundearnings-per-share growth in the 8-10% range and boosting variousnonutility energy businesses to a point where they contributeone-third of the corporate earnings by 2003.
Coastal reported record first quarter earnings of $173.6million, or 80 cents per share (assuming dilution), up 29% from1999 first quarter earnings of $134.5 million, or 62 cents pershare. It’s gas production rose 65% from the first quarter of 1999,with an almost eight-fold increase in exploration and productionearnings, said CEO David Arledge. The power segment increased netgenerating capacity by 75% and earnings by 38%. The company’sprocessing capacity is four times higher than it was a year ago.Coastal’s earnings before interest and income taxes (EBIT) for thefirst quarter were $338.6 million versus $269 million in the firstquarter of 1999. Exploration and production EBIT was $101.1million, up 787% percent from $11.4 million in the 1999 quarter.Coastal’s gas production averaged 870.7 MMcf/d, up 65% from 529.2MMcf/d in 1999. Net crude oil and condensate production averaged13,887 barrels per day (bpd) in the first quarter of 2000, up 26percent from 11,025 bpd in 1999. For the 2000 quarter, pricesrealized for natural gas averaged $2.45/Mcf ($2.51 after hedging),versus $1.59/Mcf ($1.60 after hedging) in 1999. Crude oil andcondensate prices averaged $27.02 per barrel ($23.40 after hedging)in the 2000 quarter, compared with $10.38 per barrel in the 1999period.
Wisconsin Energy Corp. and WICOR completed their merger.Wisconsin’s largest electric and second largest gas utility, andWisconsin Gas, the state’s largest gas utility, are now both under thesame holding company, Wisconsin Energy. The deal was announced in June(see Daily GPI, June 29). WEC now serves921,000 gas customers and more than 1 million electric customers inWisconsin and Michigan’s Upper Peninsula. It operates more than 16,500miles of gas main and 30,000 miles of electrical transmission anddistribution wires. The company has approximately 9,550 employees.Wisconsin Energy Corp. is a Milwaukee-based holding company withsubsidiaries in utility and non-utility businesses.
Columbia Energy Services announced the sale of Energy.com Corp.to beMANY!, an Internet-based independent agent of utility andtelecommunications services. The terms of the transaction were notdisclosed, but Columbia said it would have a minority equityinterest in beMANY!. Energy.com will continue to offer products andservices through its website located at www.energy.com. Founded in1997 with initial funding from Columbia, Energy.com offers adigital marketplace where both residential and commercial consumerscan compare energy providers, services, and pricing plans.beMANY!’s current and planned services include long-distance,wireless and local phone service, DSL, web hosting, electricity,and natural gas. “beMANY! brings us many strategic advantagesincluding an enhanced management team with a proven track record inInternet services marketing and technology development,” saidThomas Ulry, president of Energy.com. “We will also benefit frombeMANY’s strong affiliate relationships with some of the Internet’smost popular sites. These relationships will enable Energy.com tosubstantially ramp up site traffic and transactions in the comingmonths.”
Tema Oil and Gas and Gateway Gathering and Marketing closed onan acquisition of producing properties and associated gatheringassets in West Texas, valued at $21 million. In addition to 62producing wells, which will be operated by Tema, the acquisitionincludes associated leasehold with numerous proven undevelopedlocations. With this acquisition, Tema’s net reserve holdings willbe increased by 50%. The 32-mile related gathering system will beowned and operated by Gateway. It is expected that the system willbe expanded to cover additional drilling by Tema and otheroperators in the area.
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