Balance

The key lessons learned in the financial massacre of leading gas and electric companies are that “balance sheet matters…real cash flow matters…assets matter…and dividends matter,” Southern Co.’s CFO Gale Klappa told the Banc of America Securities Energy & Power Conference last Wednesday.

In an effort to further reduce its debt and strengthen its balance sheet, CMS Energy Corp. announced it has put its oil and gas exploration and production unit, CMS Oil and Gas Co., on the block and intends to exit the E&P business. The E&P operation is one of many CMS will sell this year to improve its financial situation (see NGI, May 6).

Continuing its plan to divest non-core assets and strengthen its balance sheet, Williams’ midstream gas and liquids group sold three natural gas gathering systems located in South Texas for $6 million to Hurd Investments of San Antonio and a subsidiary of Houston-based Copano Energy. The companies purchased Williams’ 76% partnership interest in the Webb-Duval system, and 100% ownership interests in the Olmitos and Cinco Compadres systems.

Continuing its plan to divest non-core assets and strengthen its balance sheet, Williams’ midstream gas and liquids group said late Thursday that it has sold three natural gas gathering systems located in south Texas for $6 million to Hurd Investments of San Antonio and a subsidiary of Houston-based Copano Energy. The companies purchased Williams’ 76% partnership interest in the Webb-Duval system, and 100% ownership interests in the Olmitos and Cinco Compadres systems.

With Peachtree’s 170,000 customers hanging in the balance, anAtlanta, GA, bankruptcy court deferred a ruling on the strugglingmarketer’s attempted customer sale until today. According tosources close to the situation, the delay was caused by ScanaEnergy Marketing, which asked for more time so that it could file abid for Peachtree’s customers.

Northwest Natural Gas Co. reported that the Oregon PublicUtility Commission (OPUC), in an order issued Nov. 12, authorized anet revenue increase from NW Natural’s Oregon operations of $0.2million/year. The revenue increase will come from rate increasesaveraging about 1.3% for Oregon residential customers, partiallyoffset by rate decreases for certain commercial and largeindustrial customers.

Vastar Resources would appear to be taking a wait-and-see viewof next year’s gas prices. CEO Chuck Davidson told Houston energyreporters Tuesday that “not much” of the company’s gas productionis hedged next year. Indeed, Vastar generally doesn’t hedge morethan a year out and hedges less than 50% of its production.Davidson said the company also is using more collars rather thanhedges linked to a specific price.