EOG Resources CEO Mark Papa said Monday he expects total North American gas production to continue falling through next year because of the decline in drilling and the continuing intrinsic decline rate of existing gas wells.
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Industry Brief
Rand Capital Corp. invested $500,000 in convertible promissory notes in Buffalo, NY-based Somerset Gas Transmission Co. LLC as part of a $3 million private placement bridge loan. Rand’s investment also provided a warrant for a minority equity interest in the company, which is planning to provide interstate natural gas pipeline transportation services from the Chicago hub and Appalachian producing basins to markets in the Northeast and Mid Atlantic. Somerset’s plan involves gas transportation through its own pipelines and the lines of others. One of Somerset’s initial acquisitions was a 40-mile section of gathering line and related facilities in Indiana County, PA, from Columbia Gas Transmission Corp. “The Somerset management team has worked for more than five years to assemble a network of pipelines and rights-of-way to transport natural gas,” said Rand CFO Daniel P. Penberthy. “Rand’s funding will allow the company to continue this acquisition strategy as the company completes their pipeline network. In this regard, Rand’s investment is structured to provide both a current return and provides the option for Rand to participate in the company’s next round of financing.”
Industry Brief
Rand Capital Corp. invested $500,000 in convertible promissory notes in Buffalo, NY-based Somerset Gas Transmission Co. LLC as part of a $3 million private placement bridge loan. Rand’s investment also provided a warrant for a minority equity interest in the company, which is planning to provide interstate natural gas pipeline transportation services from the Chicago hub and Appalachian producing basins to markets in the Northeast and Mid Atlantic. Somerset’s plan involves gas transportation through its own pipelines and the lines of others. One of Somerset’s initial acquisitions was a 40-mile section of gathering line and related facilities in Indiana County, PA, from Columbia Gas Transmission Corp. “The Somerset management team has worked for more than five years to assemble a network of pipelines and rights-of-way to transport natural gas,” said Rand CFO Daniel P. Penberthy. “Rand’s funding will allow the company to continue this acquisition strategy as the company completes their pipeline network. In this regard, Rand’s investment is structured to provide both a current return and provides the option for Rand to participate in the company’s next round of financing.”
Industry Brief
The National Energy Board (NEB) has postponed the commencement of its RH-4-2001 TransCanada PipeLines Cost of Capital public hearing until Wednesday, Feb. 27, 2002. The hearing, which is expected to be long and contentious, had been slated to start Tuesday, Feb. 19. The NEB said it had decided on the postponement after considering the circumstances and arguments of the parties on a request for postponement from the Canadian Association of Petroleum Producers.
El Paso Shares Rise on Slightly Better Fourth Quarter Results
El Paso Corp. reported slightly improved fourth quarter earnings last week. Higher transportation rates and lower costs on El Paso Natural Gas, as well as higher production and a favorable hedging program in the production unit, helped earnings improve to 72 cents per share for the quarter (after special charges including Coastal merger-related costs and asset impairments) compared to 65 cents per share in 4Q2000. Earnings before special items were 79 cents per share, a penny above Wall Street estimates. Net income was $375 million compared to $335 million in 4Q2000 ($408 million compared to $403 million excluding special items).
Pinnacle West’s 2Q Earnings Down from a Year Ago
Pinnacle West Capital Corp. reported that due to “a number of events” its consolidated net income for the second quarter came in below last year’s results for the same quarter. The company posted net income of $66.9 million ($0.79 per diluted share of common stock), compared to $89.9 million ($1.06 per share) for the same quarter a year ago.
KeySpan Acquires Westcoast Sour Gas Pipes for Rimbey Plant
KeySpan Energy Canada last week acquired all of Westcoast Capital Corp.’s interests in the Wilson Creek Express Pipeline and the Crystal Pipeline, which KeySpan said will complement its existing natural gas gathering and processing infrastructure. The pipelines gather sour gas from areas to the west and north of the KeySpan-operated Rimbey Gas Plant in Alberta.
Pinnacle West’s 2Q Earnings Down from a Year Ago
Pinnacle West Capital Corp. reported that due to “a number of events” its consolidated net income for the second quarter came in below last year’s results for the same quarter. The company posted net income of $66.9 million ($0.79 per diluted share of common stock), compared to $89.9 million ($1.06 per share) for the same quarter a year ago.
CAPP Urges Canadian Government Support for Development
Canadian producers traveled to Ottawa last week to try shaking the Canadian capital out of its largely passive approach to the supply “crisis” threatening the continent, and “make energy resource development a national priority.”
CAPP Urges Canadian Government Support for Development
Canadian producers traveled to Ottawa last week to try shaking the Canadian capital out of its largely passive approach to the supply “crisis” threatening the continent, and “make energy resource development a national priority.”