Buys

PNM Resources intiated the latest mega utility merger last week with the planned $1 billion purchase, including debt assumption, of neighboring utility holding company TNP Enterprises Inc. The purchase will double PNM’s customer base in the Southwest. PNM also raised its earnings guidance for the year, but it failed to meet Wall Street estimate of second quarter earnings.

Oklahoma City-based Chesapeake Energy Corp. last week said it will add 310 Bcfe of estimated proved reserves, 453 Bcfe of estimated probable and possible reserves and 60 MMcfe/d of production through three new acquisitions in the MidContinent and South Texas.

Despite falling short of analysts’ earnings estimates in the second quarter, PNM Resources shares moved higher Monday on the company’s $1 billion purchase, including debt assumption, of neighboring utility holding company TNP Enterprises Inc. The purchase will double PNM’s customer base in the Southwest. PNM also raised its earnings guidance for the year.

Oklahoma City-based Chesapeake Energy Corp.’s natural gas and oil production grew at a record pace in the second quarter, 29% over a year ago and 10% sequentially, the company reported Monday. The growth is expected to be even stronger in the coming months after Chesapeake announced it would add 310 Bcfe of estimated proved reserves, 453 Bcfe of estimated probable and possible reserves and 60 MMcfe/d of production through three new acquisitions in the MidContinent and South Texas. For the second quarter, Chesapeake generated net income of $85.8 million (31 cents/per diluted common share), compared with $76.3 million (31 cents) in 2Q2003. Analysts had forecast Chesapeake would earn 29 cents/share.

A day after filing an application with FERC to develop the Pine Prairie Energy Center storage project in Evangeline Parish, LA. Sempra Energy announced the purchase of another proposed storage project in the region, Liberty Gas Storage in Calcasieu Parish, LA, from HNG Storage for an undisclosed sum.

MarkWest Energy Partners LP is buying American Central East Texas Gas Co.’s Carthage gas gathering system and processing assets in East Texas for $240 million. The 180-mile gathering system serves about 1,700 wells in the Carthage field, gathering gas from the Cotton Valley, Pettit and Travis Peak formations, and currently is undergoing an 82-mile expansion.

Continuing its rapid accumulation of producing properties, Chesapeake Energy on Tuesday announced it had paid $425 million for privately-held Greystone Petroleum LLC, which owns 214 Bcfe of proved reserves and 16,100 gross acres of leasehold in the Sligo Field in Bossier Parish, LA. The field has produced 1.6 Tcfe of gas.

American Electric Power (AEP) has agreed to pay Enron Corp. $115 million for all of Enron’s interests in the 7,000-acre underground Bammel gas storage reservoir near Houston and related pipeline and storage assets, including 10.5 Bcf of gas in the storage field.

American Electric Power (AEP) has agreed to pay Enron Corp. $115 million for all of Enron’s interests in the 7,000-acre underground Bammel gas storage reservoir near Houston and related pipeline and storage assets, including 10.5 Bcf of gas in the storage field.