In an effort to strengthen its balance sheet, Tulsa, OK-based Oneok Inc. said last week it has agreed to sell certain natural gas and oil-producing properties for $300 million in cash to an undisclosed producer.
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Oneok Agrees to Sell Production Properties for $300M
In an effort to strengthen its balance sheet, Tulsa, OK-based Oneok Inc. said Monday it has agreed to sell certain natural gas and oil-producing properties for $300 million in cash to an undisclosed producer.
El Paso Sells Gas Reserves, Gathering Assets for $502M
As part of its broad asset divestiture program to strengthen its balance sheet, El Paso Corp. agreed to sell 600 Bcfe of natural gas reserves in the Uintah Basin, with current output of about 80 MMcf/d, and a Utah natural gas gathering system to Denver-based independent producer, Westport Resources Corp., for $502 million. The transaction is expected to close next month.
Ratings Mixed on Sempra: SDG&E Down, but Outlook ‘Stable’; SoCalGas ‘A+’
Despite a relatively strong balance sheet compared to the energy sector’s many fallen giants, San Diego-based Sempra Energy still faced mixed reviews from credit rating agencies last week, and its prospects for re-negotiating its $6.6 billion 10-year power supply deal with California’s Department of Water Resources were uncertain despite the ongoing federal regulatory proceedings on the DWR contracts as a whole.
Mirant, RRI No Longer Covet Top Spot as Gas Trader
No longer believers in the Enron Corp. energy trading mantra that “bigger is better,” Mirant Corp. and Reliant Resources Inc. executives said Thursday that the focus now is on cash — finding it, paying off debts with it and keeping as much of it as they can. They both conceded that for them, anyway, physical gas trading has not become a cash cow.
Mirant, RRI No Longer Covet Top Spot as Gas Trader
No longer believers in the Enron Corp. energy trading mantra that “bigger is better,” Mirant Corp. and Reliant Resources Inc. executives said Thursday that the focus now is on cash — finding it, paying off debts with it and keeping as much of it as they can. They both conceded that for them, anyway, physical gas trading has not become a cash cow.
Williams May Sell Petrochemical Assets, Baltic Refinery
The Williams Companies continues to plan asset sales to strengthen its liquidity and improve its balance sheet. The company announced Tuesday that it is considering selling its ownership interest in an olefins production plant in Geismar, LA, and an associated ethylene pipeline system in Louisiana, as well as a Baltic refinery. Terms of a potential petrochemical asset sale have not been developed, but Williams said it has received unsolicited expressions of interest.
Dynegy’s Public Offerings to Add $325M to Balance Sheet by Tuesday
Dynegy Inc.’s power subsidiary plans to raise $325 million by Tuesday (July 23) through two mortgage bond offerings, as part of the energy merchant’s strategic plan to build liquidity and restore investor confidence, which Friday was at an all-time low. With the close of the public offering, Dynegy will have raised more than $1 billion of its $2 billion goal, and has already eliminated two credit ratings triggers and slashed capital expenses. Illinois Power Co., headquartered in Decatur, IL, priced $100 million worth of bonds due in 2007, and $225 million due in 2012; both carry a 10.625% rate.
Challenges, Skepticism Face Puget Energy Despite Record 2Q Results
Significant balance sheet challenges kept at least one Wall Street rating agency restrained in its outlook following Bellevue, WA-based Puget Energy’s report of record second quarter earnings last Thursday. Puget’s second quarter results showed $29.4 million, or 34 cents/common share, in net income, compared to second quarter results last year of $17.4 million, or 20 cents/share.
Dynegy’s Public Offerings to Add $325M to Balance Sheet by Tuesday
Dynegy Inc.’s power subsidiary plans to raise $325 million by Tuesday (July 23) through two mortgage bond offerings, as part of the energy merchant’s strategic plan to build liquidity and restore investor confidence, which Friday was at an all-time low. With the close of the public offering, Dynegy will have raised more than $1 billion of its $2 billion goal, and has already eliminated two credit ratings triggers and slashed capital expenses. Illinois Power Co., headquartered in Decatur, IL, priced $100 million worth of bonds due in 2007, and $225 million due in 2012; both carry a 10.625% rate.