Acquisition

American Electric Power (AEP) late Friday completed its acquisition of the Bammel storage reservoir and related natural gas pipeline and compressor assets from Enron Corp. for $115 million.

American Electric Power (AEP) late Friday completed its acquisition of the Bammel storage reservoir near Houston and related natural gas pipeline and compressor assets from Enron Corp. for $115 million.

Acquisition activity in the U.S. midstream energy master limited partnership (MLP) sector has rebounded sharply this year, following a slow 2003, and that trend is expected to continue in the near term, according to a report highlighting current trends by Standard & Poor’s Ratings Services (S&P).

Because of its “aggressive production growth targets” and increased debt, which includes the April acquisition of Tom Brown Inc., Moody’s Investors Service lowered the long-term debt ratings on EnCana Corp. (ECA) to “Baa2” from “Baa1.” The outlook on the Calgary-based producer is stable, analysts said Wednesday.

Calgary-based Provident Energy Trust on Tuesday announced the acquisition of two small Canadian independents, Olympia Energy Inc. and Viracocha Energy Inc., which together will increase Provident’s daily production to more than 34,000 boe/d, weighted 45% to natural gas, 33% to light/medium oil and natural gas liquids (NGLs) and 22% to crude.

Calgary-based Provident Energy Trust on Tuesday announced the acquisition of two small Canadian independents, Olympia Energy Inc. and Viracocha Energy Inc., which together will increase Provident’s daily production to more than 34,000 boe/d, weighted 45% to natural gas, 33% to light/medium oil and natural gas liquids (NGLs) and 22% to crude.

Marathon Oil Corp.’s decision last week to become the sole owner of Marathon Ashland Petroleum LLC (MAP) will strengthen its business mix and long-term strategy, and the transaction eventually will enhance the growth of its emerging integrated natural gas business, analysts said.

Marathon Oil Corp.’s decision last week to become the sole owner of Marathon Ashland Petroleum LLC (MAP) will strengthen its business mix and long-term strategy, and the transaction eventually will enhance the growth of its emerging integrated natural gas business, analysts said.

The number of gas and power mergers and acquisitions across the globe fell sharply in 2003 to a historical low, but gas deals fared the worst, plummeting 91% in terms of total value, according to an annual report released Monday in London by PricewaterhouseCoopers.