Combine

NorthWestern Corp. has renamed its Montana Power unit NorthWestern Energy. Northwestern completed its purchase of Montana Power earlier this year and will combine all of its utility businesses in Montana, South Dakota and Nebraska under the new company.

The American Gas Association’s weekly gas storage report has been the cause of “substantial and largely unwarranted price volatility in the natural gas marketplace,” the American Public Gas Association (APGA) said last week in comments regarding the planned continuation of the AGA report by the Energy Information Administration (EIA). APGA said it will be EIA’s duty, when it takes up the storage survey next spring, to make sure that “unwarranted” price volatility does not continue.

The American Gas Association’s weekly gas storage report has been the cause of “substantial and largely unwarranted price volatility in the natural gas marketplace,” the American Public Gas Association said this week in comments regarding the planned continuation of the AGA report by the Energy Information Administration. APGA said it will be EIA’s duty, when it takes up the storage survey next spring, to make sure that “unwarranted” price volatility does not continue.

In a merger that would create the second largest refiner of petroleum products in the United States behind ExxonMobil Corp., San Antonio-based Valero Energy Corp. and Ultramar Diamond Shamrock Corp. (UDS) announced last week that they have entered into an agreement in which Valero will acquire UDS in a transaction valued at $6 billion.

In a merger that would create the second largest refiner of petroleum products in the United States behind ExxonMobil Corp., San Antonio-based Valero Energy Corp. and Ultramar Diamond Shamrock Corp. (UDS) announced on Monday that they have entered into an agreement in which Valero will acquire UDS in a transaction valued at $6 billion.

Baker Hughes and Schlumberger plan to create a new seismicventure called Western GECO that would combine and own the seismicacquisition assets, data processing assets, and multi-clientseismic libraries and other assets of their existing subsidiariesWestern Geophysical and GECO-Prakla. The transaction is expected tobe completed before the end of the year and is subject toregulatory approvals. Upon formation of the venture, Baker Hugheswould receive from Schlumberger $500 million in cash. Thetransaction would also allow Baker Hughes to make certain workingcapital and asset reductions valued at $100 million. Baker Hughesand Schlumberger would own 30% and 70% of the venture,respectively. The companies have made filings under theHart-Scott-Rodino Antitrust Improvements Act of 1976, and areresponding to requests for additional information from theDepartment of Justice. In addition, Baker Hughes and Schlumbergerintend to make additional filings with regulatory authorities incertain European and other countries.

Baker Hughes and Schlumberger plan to create a new seismic venture called Western GECO that would combine and own the seismic acquisition assets, data processing assets, and multi-client seismic libraries and other assets of their existing subsidiaries Western Geophysical and GECO-Prakla. The transaction is expected to be completed before the end of the year and is subject to regulatory approvals.

Surprise! FirstEnergy of Akron, OH and Morristown, NJ-based GPUInc. formally announced that Monday’s widely circulated and detailedrumors of a merger were indeed true (see Daily GPI, Aug. 8). In meetings yesterday, bothcompanies’ boards of directors unanimously approved the merger underwhich FirstEnergy would acquire all of GPU’s outstanding shares ofcommon stock for about $4.5 billion in cash and common stock.

In keeping with the consolidation of the natural gas industry,the boards of directors of GRI (formerly Gas Research Institute)and the Institute of Gas Technology (IGT), the leading energyresearch organizations, said yesterday they have approved inprinciple a combination of the two organizations. The boards areexpected to meet again next Monday to give their final stamp ofapproval to the deal.