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.
Tag / Acquisition
SubscribeAcquisition
Articles from Acquisition
TransCanada to Hold Majority Stake in PNGTS with El Paso Acquisition
By the end of the fourth quarter, Calgary-based TransCanada Corp. could own nearly three-quarters of New England’s Portland Natural Gas Transmission System (PNGTS), if its agreement to buy El Paso Corp.’s 29.64% stake passes muster with the other system’s partner, Gaz Metropolitain and Co. Ltd. Partnership.
TransCanada to Hold Majority Stake in PNGTS with El Paso Acquisition
By the end of the fourth quarter, Calgary-based TransCanada Corp. could own nearly three-quarters of New England’s Portland Natural Gas Transmission System (PNGTS), if its agreement to buy El Paso Corp.’s 29.64% stake passes muster with the other system’s partner, Gaz Metropolitain and Co. Ltd. Partnership.
Forest Acquires 70 Offshore, LA Assets from Unocal
In its fourth acquisition since May, Forest Oil Corp. last week agreed to buy 70 of Unocal Corp.’s offshore Gulf of Mexico (GOM) and onshore Louisiana properties for $295 million. As of July 1, the 273,000 net acres held approximately 34 MMboe in reserves, with net production of 18,000 boe/d.
Dominion Resources’ Capps Doubts PUHCA Repeal Will Revive Utility M&A
Merger and acquisition activity in the electric utility industry is practically non-existent in the wake of the turmoil that has exposed the frail financial underpinnings of some companies, says the head of Dominion Resources Inc., one of the few power and natural gas companies to survive the industry upheaval intact and whose stock still remains in the double digits.
NiSource Completes Sale of E&P Unit to Triana
NiSource Inc. on Friday completed the sale of its exploration and production subsidiary, Columbia Energy Resources (CER), to Triana Acquisition LLC, an affiliate of Morgan Stanley Capital Partners. The sale primarily consists of Columbia Natural Resources (CNR) and its 1.1 Tcf of natural gas reserves.
AGL Rolls Out New Acquisition/Development Subsidiary
Looking to beef up efforts to acquire or develop assets as part of the company’s strategic growth plan, AGL Resources Inc. has created a new business development unit, Pivotal Energy Development. The new business entity will report to Kevin P. Madden, executive vice president of distribution and pipeline operations for AGL.
Industry Briefs
Apache Corp. has closed the Gulf of Mexico portion of its $1.3 billion acquisition of producing properties fomerly owned by BP. The United Kingdom North Sea portion of the transaction is expected to close within the next two months. Apache paid an adjusted price of $509 million for the Gulf of Mexico properties, which have estimated proved reserves of 72.2 million boe. The price was adjusted from the originally announced $670 million to account for the exercise of preferential rights by third parties involved in some of the properties (a reduction of $70 million), production since the Jan. 1, 2003, effective date of the transaction, and other minor adjustments. The Gulf of Mexico properties are located offshore Texas and Louisiana in areas where Apache has substantial existing operations. Net current production from the acquired properties, after adjustments, is 200 MMcf/d and 19,000 bbl/d of liquids.
Enbridge Picks Up El Paso Interest in Alliance
Calgary, AB-based Enbridge Inc. said Friday it closed on the acquisition of an additional 6.1% interest in the Alliance Pipeline from El Paso Corp, and will pick up another 1.1% interest in the pipeline from El Paso at the end of the first quarter of 2003.
FERC Initiates Industry-Wide Audit of Annual Reports Between 1998-2001
The Federal Energy Regulatory Commission’s Division of Regulatory Audits last week began an industry-wide audit of annual financial reports to determine why such a high number of jurisdictional natural gas and electricity companies reported negative balances in their asset (cash) accounts pertaining to subsidiary investments for 2001.