Bedminster

Moody’s Investor’s Service downgraded the senior unsecured debt of Bedminster, NJ-based NUI Utilities to Baa1 from A3 and the senior unsecured debt of its non-regulated parent, NUI Corp., to Baa2 from Baa1, with a negative outlook. NUI’s earnings and cash flow have been under pressure by warm winter weather, a lackluster economy and the unfavorable market conditions in the marketing and trading business.

Bedminster, NJ-based NUI Corp. said last week that it will launch a non-binding open season for expressions of interest in up to 7 Bcf of firm gas storage to be developed in the Richton Salt Dome storage facility in Perry County, MS. The open season will run through 5 p.m. EDT on July 3.

Citing a number of factors affecting the energy industry currently, Bedminster, NJ-based NUI Corp. reported earnings from continuing operations of $16.7 million ($1.18 per share) for the second quarter ended March 31, compared to $18.3 million ($1.41 per share) for the same quarter last year. Despite the decline, the company said it is not changing its current guidance of $1.80 – $1.90 per share for fiscal 2002, excluding the effect of the change in accounting and all non-recurring and discontinued items.

Virginia Gas Co.’s shareholders last week approved a merger planwhich would allow the company to fold under Bedminster, NJ-basedNUI Corp. as a wholly-owned subsidiary. Under the terms of themerger, NUI Corp. will acquire all of Virginia Gas’ shares ofcommon stock for $4.00 per share in NUI common stock. The exchangeratio will be established at a time more near the merger’scompletion. Based on Virginia Gas’ outstanding shares, thetransaction value of the company’s equity is placed at $22 million.

GPU Advanced Resources of Reading, PA, and NUI Energy, ofBedminster, NJ, formed a retail marketing alliance that will giveeach company access to the other’s unregulated retail gas andelectric customers. GPU Advanced Resources currently serves about17,000 electric customers in New Jersey and Pennsylvania, while NUIis active in retail gas customer choice programs in New Jersey,Pennsylvania and Maryland. The alliance is effective immediately.

GPU Advanced Resources of Reading, PA, and NUI Energy, ofBedminster, NJ, formed a retail marketing alliance that will giveeach company access to the other’s unregulated retail gas andelectric customers. GPU Advanced Resources currently serves about17,000 electric customers in New Jersey and Pennsylvania, while NUIis active in retail gas customer choice programs in New Jersey,Pennsylvania and Maryland. The alliance is effective immediately.