Williams disclosed that its former telecommunications business, Williams Communications Group, intends to exercise a purchase right for certain assets for which Williams is guarantor. WCG expects Williams to pay for the fiber-optic network and associated facilities, pursuant to the guarantee, which was negotiated in September 1999, in return for unsecured debt or equity. Williams CEO Steve Malcolm said the action already was factored into earnings, balance sheet and liquidity numbers reported in filings and presented to investors during the past week. “In the event we need to perform on this obligation, we have developed more than sufficient financial capacity to do so,” he said. The issue involves credit support of $750 million for a lease agreement related to the communications assets. The expected closing date for the transaction is April 1. Williams Communications said the move will help preserve its flexibility to achieve a previously-announced comprehensive balance sheet restructuring. The proposed restructuring is intended to support uninterrupted business service and, at the same time, minimize any impact to customer and vendor relationships. Discussions with the company’s banks and others have been expanded to include multiple restructuring options, including the use of a negotiated Chapter 11 reorganization as a restructuring mechanism. The company may decide to pursue that alternative to allow for a more orderly process that maximizes enterprise value.
Certain
Articles from Certain
Interior Expands Deepwater Royalty Relief
The Interior Department’s Minerals Management Service (MMS) has issued on final rule on new procedures for obtaining royalty relief for certain offshore federal deepwater leases. It will allow some lease operators to apply for additional discretionary relief where royalty relief in the lease term is insufficient and the marginal nature of the project will preclude its further development.
FERC Staff Defers Construction of Petal Gas Pipe
Citing its failure to comply with certain environmental requirements, FERC staff has denied Petal Gas Storage LLC’s request to proceed with the construction of a 59-mile, 36-inch pipeline and associated facilities that would connect its expanding storage facilities in Hattiesburg, MS, with three interstate gas pipelines.
FERC Staff Defers Construction of Petal Gas Pipe
Citing its failure to comply with certain environmental requirements, FERC staff has denied Petal Gas Storage LLC’s request to proceed with the construction of a 59-mile, 36-inch pipeline and associated facilities that would connect its expanding storage facilities in Hattiesburg, MS, with three interstate gas pipelines.
SEC Launches Formal Investigation into Enron’s Transactions
Enron Corp. reported Wednesday that the U.S. Securities and Exchange Commission (SEC) has launched a formal investigation into “certain of the matters that were the subject of recent press reports and that previously were the subject of an informal inquiry” — all centered on the company’s related-party transactions.
EIA Sees Downward Spiral for Gas Prices
Although certain pockets of the country that use large amounts of gas for power generation may see some increase in natural gas prices over the next couple of months, the chance of any significant summer jump in gas prices now seems remote, according to a new Energy Information Administration (EIA) report. With natural gas storage injections hitting record highs in April through June, the agency sees average wellhead prices in the third quarter continuing on a downward slope, averaging $3.40/Mcf.
EIA Continues to Chart Downward Spiral For Gas Prices
Although certain pockets of the country that use large amounts of gas for power generation may see some increase in natural gas prices over the next couple of months, the overall likelihood of any significant summer jump in gas prices now seems remote, the Energy Information Administration (EIA) recently concluded. With natural gas storage injections hitting record highs in April through June, EIA sees average wellhead prices in the third quarter continuing on a downward slope, averaging $3.40/Mcf.
EIA: Supply Fears Prop Up Spot, Futures Prices
Due to warm winter weather in certain regions last month,increased fuel switching and industrial slowdowns, the countryconsumed 140 Bcf less natural gas than was anticipated in January,which led to much lower spot gas prices towards the end of themonth, according to the Energy Information Administration’s (EIA)Short-term Energy Outlook for February.
EIA: Supply ‘Uneasiness’ Props Up Gas Prices
Due to warm winter weather in certain regions last month,increased fuel switching and industrial slowdowns, the countryconsumed 140 Bcf less natural gas than was anticipated in January,which led to much lower spot gas prices towards the end of themonth, according to the Energy Information Administration’s (EIA)Short-term Energy Outlook for February.
Prices Soften Despite Frigid Fundamentals, Higher Screen
One marketer was certain it had to be psychological factors thatsent most markets lower by various amounts Tuesday because, as henoted, fundamentals and the screen indicated an upward pathinstead. Few points besides Malin and the PG&E citygate managedgains as the majority ranged from essentially flat to down about adollar in the Northern Natural Gas market area.