Capital

Hedge fund Pirate Capital LLC said last week it is suing to block Aquila Inc. from selling its Missouri electric utilities — Missouri Public Service and St. Joseph Light and Power — to Great Plains Energy Inc., parent of Kansas City Power & Light (KCP&L) for $1.7 billion in cash and stock plus assumption of $1 billion of Aquila debt.

Hedge fund Pirate Capital LLC is suing to block Great Plains Energy Inc.’s acquisition of Aquila and its Missouri-based electric utility by Kansas City Power & Light (KCP&L) parent Great Plains Energy Inc. for about $1.7 billion in cash and stock plus assumption of $1 billion of Aquila debt.

Characterizing his energy trading unit as having “tremendous liquidity and highly ample capital,” the head of Sempra Energy Commodities told a financial analysts meeting late in March that he sees the environment for trading remaining mostly unchanged through 2009 with annual profits in the $350-450 million range. David Messer spoke at an analysts’ meeting hosted by Sempra in San Diego March 29.

Characterizing his energy trading unit as having “tremendous liquidity and highly ample capital,” the head of Sempra Energy Commodities said he sees the environment for trading remaining mostly unchanged through 2009 with annual profits in the $350-450 million range. David Messer spoke at a financial analysts meeting hosted by Sempra in San Diego Thursday.

Pirate Capital LLC, owner of about 17.6 million shares of Aquila Inc. — the target of two friendly acquisitions announced this week — said Friday it opposes Aquila’s proposed deals with Great Plains Energy and Black Hills Corp. (see Daily GPI, Feb. 8).

PAA/Vulcan Gas Storage LLC, a joint venture between Plains All American Pipeline LP and Vulcan Capital, said it purchased an additional 240 acres of land adjacent to the proposed 24 Bcf Pine Prairie Energy Center (PPEC) gas storage project near near Pine Prairie, LA, in order to provide space for future expansions. The company said that along with existing acreage the additional land could provide space for another 11 salt caverns, bringing ultimate working gas capacity to 112 Bcf.

PAA/Vulcan Gas Storage LLC, a joint venture between Plains All American Pipeline LP and Vulcan Capital, said it purchased an additional 240 acres of land adjacent to the proposed 24 Bcf Pine Prairie Energy Center (PPEC) gas storage project near near Pine Prairie, LA, in order to provide space for future expansions. The company said that along with existing acreage the additional land could provide space for another 11 salt caverns, bringing ultimate working gas capacity to 112 Bcf.

Houston-based independent Plains Exploration & Production Co. (PXP) on Wednesday raised its capital spending estimate for the year to $610 million from $526 million, and said most of the additional spending will target the deepwater Gulf of Mexico (GOM).

Producers are expected to spend 7% more on capital expenditures this year than in 2005, and the North American drilling rig count is at a 20-year high — up 19.4% since July 2005. But with more money to spend and fewer conventional resources to exploit, U.S. producers have shifted their exploration strategies to the “evolving opportunities” onshore, energy analysts said last week.