Agreed

EEX Corp. agreed to trade substantially all of its Permian Basinproperties in West Texas and Eastern New Mexico for the shallowwater properties located off the coast of Texas and Louisiana ofEnergen Resources Corp., the oil and gas subsidiary of EnergenCorp. In addition to the shelf properties, EEX will receive $9million in cash. “This trade is another step in our strategy toexit the onshore business and focus on offshore Gulf of Mexico.These new properties will improve near-term production of naturalgas and will contribute to improving our cost structure by loweringper unit production costs while eliminating overhead costs relatedto onshore properties,” said Tom Hamilton, EEX CEO.

CMS Energy would boost its presence in the Midcontinent with thepurchase of Continental Natural Gas for $155 million. The companiesagreed for CMS to acquire 100% of Continental’s common stock andassume Continental debt. The deal is worth about $90 million indebt and $65 million in equity for an approximate total value of$155 million. The agreement is subject to Continental shareholderapproval, and majority shareholders have said they favor it.Closing is expected early in the fourth quarter.

Houston Industries Power Generation Inc. (HIPG) and the WoodRiver Refining Co. (WRRC) agreed to develop a 634 MW gas-firedpower plant at Wood River’s refinery in Roxana, IL.

Swift Energy Co. has agreed with Sonat Exploration Co., asubsidiary of Sonat Inc., to purchase for $87.6 million producingoil and gas properties that will increase its reserves by about25%. The deal signifies a redirection of Swift spending plans awayfrom drilling and to acquisition in light of depressed oil prices.

El Paso Energy’s Tennessee Gas Pipeline unit agreed in principlewith Pemex Gas Y Petroquimica Basica, a subsidiary of PetroleosMexicanos, to interconnect facilities between the companies’pipelines. The new facilities will be built from the end ofTennessee’s Donna lateral in Hidalgo County, TX, across theinternational border to Pemex’s existing facilities at Reynosa,Mexico. The interconnect is expected to be in service by January1999.

Consolidated Edison and Orange and Rockland Utilities agreed tomerge with ConEd acquiring all the common stock of O&R for$58.50 per share in a deal worth about $790 million. O&R wouldbecome a wholly owned subsidiary of ConEd. The transaction would beaccounted for as a purchase and is expected to be accretive toConEd’s earnings per share after the first year.

Union Pacific Resources Group agreed to pay about $59 millionfor Occidental Petroleum’s interests in four oil and gas fields insouthwest Wyoming, 23 producing wells in Louisiana, increasedownership in the Masters Creek Gas Plant and nearly 127,000 netacres in the Louisiana extension of the Austin Chalk trend.

Puget Sound Energy of Bellevue, WA, and Duke Energy Trading andMarketing (DETM) agreed to coordinate marketing and tradingactivities in 14 western states and British Columbia.

Mitchell Energy & Development agreed to pay $50 million foroil and gas producing properties in three separate transactions.