Basis

Williams has no intention to delay any of its natural gas exploration and production (E&P) operations in the Rocky Mountains — even with the basis blowouts that have decimated gas prices in the region over the past few months.

Williams has no intention to delay any of its natural gas exploration and production (E&P) operations in the Rocky Mountains — even with the basis blowouts that have decimated gas prices in the region over the past few months.

With Hurricane Dean continuing to recede as a potential threat to U.S. offshore production, cooling load remaining sparse outside the South and Southwest and a near-dollar plunge by September futures the day before serving as highly negative guidance, the cash market continued to fall by mostly large amounts at all points Tuesday.

Forest Oil Corp. and The Houston Exploration Co. (THX) stockholders separately have approved a merger agreement between the two companies (see Daily GPI, Jan. 9). On a pro forma basis, the acquisition will give Forest a total estimated proved reserves base of 2.0 Tcfe, of which about 69% would be classified as proved developed and approximately 70% would be natural gas. Denver-based Forest management and its board of directors will continue in their current positions, and it is anticipated that Forest will create a new business unit to be located in Houston. Under the terms of the agreement, THX stockholders will receive total consideration equal to 0.84 shares of Forest common stock and $26.25 in cash for each outstanding share of THX common stock, which represents $60.02/share to be received by THX stockholders based on the average closing price of Forest shares during the 10-day valuation period specified in the merger agreement. About 18.5 million of THX outstanding total shares, or 65.2%, voted to approve the transaction. Following the closing, Forest stockholders will own 73% of the combined company; THX stockholders will own 27%.

On a preliminary basis, Avista Corp.’s trading/marketing arm, Avista Energy, showed a loss of 14 cents/diluted share for the first quarter this year, compared to 10 cents/diluted share in profits for the same period last year, the parent company reported Wednesday in the wake of announcing Tuesday it has sold essentially all of its marketing/trading assets to Shell’s Coral Energy Holding LP.

Analysts at UBS said an offer by Royal Dutch Shell plc for the Shell Canada Ltd. shares it does not own could signal consolidation to come among Canadian energy players.

Citing the above-normal natural gas inventory levels this year, Columbia Gas Transmission Corp. is seeking authorization to increase on a temporary basis the maximum volume of gas in storage in 11 of its storage fields above the amount currently certificated by FERC.

Citing the above-normal natural gas inventory levels this year, Columbia Gas Transmission Corp. is seeking authorization to increase on a temporary basis the maximum volume of gas in storage in 11 of its storage fields above the amount currently certificated by FERC.

Following Thursday’s state regulatory approval, Pacific Gas and Electric Co. customers will be the first in the state to have time-of-use pricing options on a widespread basis under the five-year, $1.7 billion smart metering system the utility now has the authorization to begin implementing. In contrast, Southern California Edison Co. customers will probably have to wait up to two years for similar options, but when they get them Edison hopes they will get a broader array of user-friendly options they can build onto their smart meters.