Bought

Atmos Energy Corp.’s nonutility holding Co. Atmos Energy Holdings Inc., has bought some Kentucky-based market area storage facilities and associated pipeline assets for $13 million in cash. The assets will be utilized by subsidiary Woodward Marketing LLC, which also recently expanded its operations though the $3 million purchase of Innovative Gas Services Inc. (IGS) and the common stock of Southern Resources Inc.

Tennessee-based independent producer Energy Search Inc. announced it has agreed to be bought by EOG Resources for $8.22 per share or about $37.6 million, a premium of $1.40/share (21%) over the average closing price of Energy Search common stock during the previous 20 trading days. The company’s stock closed yesterday at $8.03. The merger is expected to be completed in the early part of the third quarter of 2001. The Tennessee-based independent producer holds 75 Bcfe of reserves and produces about 7 MMcf/d of Appalachian natural gas. Its proven reserves increased 17.9% in 2000 compared to 1999.

Guardian Pipeline said it bought five engine compressor packagestotaling 22,225 hp to provide natural gas compression on its141-mile, 660 MMcf/d pipeline in Illinois and Wisconsin. Itpurchased the compressors from Compressor Systems, Inc. of Midland,TX. Combined, the compressors will be capable of delivering up to750 MMcf/d of gas on Guardian. “Guardian Pipeline is continuing tomake steady progress. This purchase agreement for a major equipmentcomponent keeps Guardian on track to meet its scheduled in-servicedate of November 2002,” said George Hass, Guardian project manager.A final Federal Energy Regulatory Commission (FERC) decision on theGuardian Pipeline is expected by early 2001. In June, FERC issued aPreliminary Determination that the pipeline is in the publicinterest, subject to the outcome of its environmental review, andin July, FERC staff issued a favorable Draft Environmental ImpactStatement on the project. In addition, the Public ServiceCommission of Wisconsin made a preliminary determination on theproject in October, accepting the economics of a Wisconsin Gaslateral pipeline, which will connect Guardian with Wisconsin Gas’distribution system. Guardian will transport gas frominterconnections with Alliance, Northern Border, Midwestern, andNGPL at the Chicago hub near Joliet, IL, to northern Illinois andsouthern Wisconsin markets starting in November 2002. Its sponsorsinclude CMS, WICOR and Viking Gas.

Evergreen Resources, the largest producer in the Raton Basin ofColorado, got a lot larger last week. The company bought 153 Bcf ofcoal-bed methane reserves in the basin from a subsidiary of KansasCity Power & Light for $176 million, or about $1.15/Mcf.

Evergreen Resources, the largest producer in the Raton Basin ofColorado, got a lot larger yesterday. The company bought 153 Bcf ofcoal-bed methane reserves in the basin from a subsidiary of KansasCity Power & Light for $176 million, or about $1.15/Mcf.

Texaco bought a 20% equity stake in hydrogen storage specialistand fuel cell developer Energy Conversion Devices, Inc. (ECD) lastweek for $67.3 million. While the major producer has not lost sightof the importance of its upstream and downstream businesses nor thesurge in mergers among its major competitors, it has chosen tofocus on a variety of new technologies that it believes willdetermine the future of the automobile and electric powerindustries.

Texaco bought a 20% equity stake in hydrogen storage specialistand fuel cell developer Energy Conversion Devices, Inc. (ECD)yesterday for $67.3 million. While the major producer has not lostsight of the importance of its upstream and downstream businessesnor the surge in mergers among its major competitors, it has chosento focus on a variety of new technologies that it believes willdetermine the future of the automobile and electric powerindustries.

Kerr-McGee Corp. has bought a 50% stake in four explorationlicenses covering 1.5 million acres offshore Nova Scotia, Canada,from Canadian 88 Energy Corp. for $10.5 million. The deepwaterexploration prospects are located 125 miles south of Halifax inwater depths from 500 to 9,200 feet.

Questar Pipeline bought Enron Overthrust Pipeline Co.’s 18%interest in the Overthrust Pipeline effective Jan. 1, 2000. Thetransaction gives Questar Pipeline a 72% interest in the 88-mile,36-inch-diameter pipeline, which runs from the Whitney Canyon area— north of Evanston, WY, — to Rock Springs, WY. QuestarPipeline designed and built the Overthrust Pipeline, and hasoperated it since its completion in October 1982. Other partnersare Natural Gas Pipeline Co. of America and Colorado Interstate GasCo. The Overthrust Pipeline is a segment of the 793-mileTrailblazer system, which runs from southwestern Wyoming toBeatrice, NE. “Increased ownership of the Overthrust Pipeline is anatural fit for us,” said Questar Pipeline President Nick Rose.”Its location in our service territory and proximity to ourfacilities and supply sources will enhance the services weprovide.”