Advantage

Through mergers and acquisitions, most of the top 10 oil and gas companies have made concerted efforts to achieve higher returns and greater cost efficiency, and they now hold the financial ability to strengthen their portfolios even more, according to a study by PIRA Energy Group, a New York-based energy consulting firm.

Through mergers and acquisitions, most of the top 10 oil and gas companies have made concerted efforts to achieve higher returns and greater cost efficiency, and they now hold the financial ability to strengthen their portfolios even more, according to a study by PIRA Energy Group, a New York-based energy consulting firm.

Range Resources boosted its hedging position to take advantage of recent commodity price increases, locking in prices for two-thirds of its oil and gas production next year. All of the Company’s hedges are straight swaps entered into primarily with major financial institutions. “With approximately 75% of projected production from current projects hedged for the fourth quarter, and roughly two-thirds hedged for 2003 at attractive prices, we have greatly enhanced the predictability of our cash flow,” said Range President John H. Pinkerton. “To the extent futures prices maintain current levels or extend their gains, we will continue to pursue our policy of hedging 50-75% of anticipated production at least for 12-18 months.” The company has 97,842 MMBtu/d of gas production hedged for the fourth quarter at $4.08/MMBtu, 84,659 MMBtu/d hedged for 2003 at $3.95, 41,471 MMBtu/d hedged for 2004 at $3.92 and 9,932 MMBtu/d hedged in 2005 at $3.80. Range’s production comes primarily from the Permian Basin, as well as basins in the Midcontinent, Gulf Coast and Appalachian regions.

Range Resources boosted its hedging position to take advantage of recent commodity price increases, locking in prices for two-thirds of its oil and gas production next year. All of the Company’s hedges are straight swaps entered into primarily with major financial institutions.

Taking advantage of another opportunity to build its gas storage portfolio, PacifiCorp Power Marketing, Inc. (PPM), the competitive U.S. energy business of United Kingdom-based ScottishPower, said late last week that it has entered into an agreement to acquire Aquila Corp.’s Katy gas storage complex in Texas and four other gas storage development projects for $180 million.

Taking advantage of another opportunity to build its gas storage portfolio, PacifiCorp Power Marketing, Inc. (PPM), the competitive U.S. energy business of United Kingdom-based ScottishPower, said Thursday that it has entered into an agreement to acquire Aquila Corp.’s Katy gas storage complex in Texas and four other gas storage development projects for $180 million.

Taking advantage of a consent order that required ChevronTexaco to sell some assets before a merger could be completed, Duke Energy Field Services (DEFS) picked up a jewel — a 33% stake in Discovery Producer Services LLC, which extends from the deepwater offshore Louisiana to onshore delivery points 30 miles south of New Orleans. The system includes a 600 MMcf/d interstate gas pipeline, including a 30-inch mainline that extends to the edge of the outer continental shelf. Financial details were not disclosed, and the transaction is expected to close in the second quarter.

Taking advantage of falling natural gas prices that have pushed down the worth of energy companies, Dominion announced last week it will acquire Louis Dreyfus Natural Gas Corp.– with 89% of its production in natural gas — for $2.3 billion in cash, stock and assumed debt. The deal will improve the utility giant’s gas reserves by 60% and grow its energy trading business, which in turn could lead to some generation acquisitions down the road, according to Dominion’s CEO.

Taking advantage of falling natural gas prices that have pushed down the worth of energy companies, Dominion announced Monday it will acquire Louis Dreyfus Natural Gas Corp.– with 89% of its production in natural gas — for $2.3 billion in cash, stock and assumed debt. The deal will improve the utility giant’s gas reserves by 60% and grow its energy trading business, which in turn could lead to some generation acquisitions down the road, according to Dominion’s CEO.