The foreign invasion of the U.S. electric utility market got abig shot in the arm yesterday when the Federal Energy RegulatoryCommission approved two separate transactions valued at $10-$11billion.
Articles from Acquisitions
CMS Energy settled Federal Trade Commission charges on Fridaythat threaten to hold up its acquisition of Panhandle Eastern andTrunkline Pipeline from Duke Energy. The FTC charged the purchasewould limit pipeline competition in 54 counties in Michigan. Thesettlement allows CMS to close the deal basically unchanged, but itdid delay the closing by many weeks, a CMS official said.
The pace of announced mergers and acquisitions (M&A) haspicked up steam in the last few weeks because electric utilitiesare realizing that the pool of potential natural gas targets isquickly dwindling, according to a Merrill Lynch & Co. report.
Texaco joined the growing crowd of producers revising downwardcapital expenditures for 1999. The company said its 1999 capexwould total $3.7 billion, including subsidiaries and affiliates,down $600 million from its original $4.3 billion plan. Chevron,Arco and Unocal announced similar reductions last month.
Oneok completed two reserve acquisitions totaling $54 millionwith estimated proven reserves that could exceed 75 Bcfe. Bothdeals are for primarily natural gas reserves in Oklahoma. Acash-for-stock agreement was made to acquire the privately heldOklahoma properties of Anderman Oil Corp., AOL Holdings Inc., andMohan Petroleum Oklahoma Inc. The purchase price is $28.5 million,subject to certain adjustments, with an effective date of Aug. 1,1998. Oneok also will acquire properties from St. Mary Land &Exploration Co. for $25.5 million, subject to adjustments, with aneffective date of Sept. 1.
Mitchell Energy & Development has grown its gas reserves toan all-time high and increased combined oil and gas reserves bynearly 10% over the last six months by acquiring producingproperties in Limestone and Colorado counties in Texas.
The trend of Canadian producer acquisitions by U.S. companiescontinued Tuesday with the announcement that Devon Energy Corp.agreed to acquire Canada’s Northstar Energy Corp. and create anevenly balanced oil and gas producer with 53% of its reserves inthe U.S. and 47% in Canada.