Houston-area residents served by Reliant Energy Entex will see a 22% reduction in natural gas bills beginning in February, saving customers about $90 million on an annual basis. The reduction follows one last August when the company announced a 19% reduction to save about $100 million on an annual basis. A typical bill for 100 cubic feet that was $83.27 now will be $65.17, reflecting fluctuations in fuel prices. “The price we pay to purchase natural gas has continued to drop in the last several months, and these lower wholesale prices reduce the cost of delivering natural gas,” said Tom Standish, president of Reliant Energy HL&P/Entex.

Devon Energy Corp. said it has completed it purchase of Mitchell Energy & Development. Shareholders approved the transaction at special meetings Thursday. Each Mitchell common share was converted into 0.585 shares of Devon stock and the right to receive $31 cash. Conversion requires issuance of approximately 29.7 million additional Devon common shares, resulting in total shares outstanding of approximately 156 million. The transaction will be accounted for as a purchase of Mitchell by Devon. Devon CEO J. Larry Nichols said, “The addition of Mitchell’s fast-growing Barnett Shale gas production and powerful midstream operations firmly establishes Devon as a premier independent with an outstanding complement of oil and gas assets in North America.” The combined company has proved oil and natural gas reserves of 2 billion boe. Proved reserves are 60% natural gas and 40% liquids. Production is 68% gas and 32% liquids, with 95% coming from North America. The combined company also holds more than 25 million net undeveloped acres worldwide.

©Copyright 2002 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.