Common

Regency Energy Partners LP has acquired Pueblo Midstream Gas Corp. from Bear Cub Investments LLC for $55 million ($35 million in cash and approximately 750,000 Regency common units), the company said last week.

Regency Energy Partners LP has acquired Pueblo Midstream Gas Corp. from Bear Cub Investments LLC for $55 million ($35 million in cash and approximately 750,000 Regency common units).

ConocoPhillips said it will buy back up to $4 billion of its common stock this year, $3 billion more than the company announced just three weeks ago. Up to $1 billion is scheduled to be repurchased by the end of the first quarter. The Houston-based producer announced three separate $1 billion share buybacks in 2005, but there were no repurchase programs announced last year (see Daily GPI, Oct. 14, 2005). The repurchases this year will be made at management’s discretion at prevailing prices, and may be increased, decreased or discontinued at any time, ConocoPhillips noted. The company also announced a quarterly dividend rate hike of 14% to 41 cents/share from 36 cents. The dividend is payable March 1 to shareholders of record at close of business Feb. 20.

WPS Resources Corp. completed the $315 million acquisition of natural gas distribution operations serving 161,000 customers in Michigan from Aquila Inc. Annual gas throughput from the Michigan operations totals 36 Bcf/year, and the distribution system includes a 3.6 Bcf storage field. The assets operate under a cost-of-service environment and are currently allowed an 11.4% authorized return on equity on a 45% equity component of the regulatory capital structure. “This acquisition is a great strategic fit with our existing operations given the geographic and operational profile of our combined asset base,” said WPS Chairman said Larry Weyers. “We are building the scale and scope of our regulated operations in a jurisdiction where we already operate. Natural gas distribution is a core business for us.” Weyers said that WPS Resources will not reduce field staff, but instead is welcoming the 182 Michigan employees into its existing ranks of 2,945 employees. The assets will be owned and operated by WPS Resources’ wholly owned subsidiary, Michigan Gas Utilities Corp. The Minnesota portion of the acquisition announced in September 2005 is expected to close in the first half of 2006. Combined with the acquired Michigan assets, WPS will serve roughly 469,000 gas customers through its regulated utilities with annual natural gas throughput of 118.6 Bcf. WPS already serves more than 476,000 electric customers through its regulated electric utilities.

Losses of a dollar or more were common in the cash market Thursday as forecasts for some moderation of cold weather in northern market areas and Wednesday’s screen decline of just under 30 cents caused all points to plunge Thursday. A bearish storage report and further futures weakness are expected to extend cash market weakness into the weekend.

In a common scenario being repeated by state regulators throughout the West, the Idaho Public Utilities Commission at month’s end approved a 27.6% natural gas rate increase for Intermountain Gas on Friday and set an Oct. 20 deadline for taking comments on a 23.8% gas rate hike proposal by Avista Utilities a day earlier. The Intermountain rate increase is effective Saturday (Oct. 1), and Avista is seeking a Nov. 1 start for its proposed increase.

Williams’ board on Wednesday approved a 50% dividend increase to 7.5 cents per share on the company’s common stock. This is the second increase in the Williams dividend over the past year. In November 2004, Williams increased its dividend from a penny to a nickel. “We’re successfully executing our business plan and using our financial discipline to create superior, sustainable growth in shareholder value,” said CEO Steve Malcolm. “The dividend increase reflects the confidence we have in our business and our substantial liquidity position. Williams’ strong, sustainable cash flow is enabling growth initiatives, credit improvement and a positive return to our shareholders.”

Kerr-McGee Corp.’s chemicals unit, New-Co Chemical Inc., has filed an initial public offering (IPO) for up to $300 million in Class A common stock. However, Kerr-McGee still holds an option to sell New-Co if the opportunity arises.

Duke Energy’s board of directors last Thursday said it approved a plan to buy back up to $2.5 billion in common stock over the next three years, which will be funded in part by the sell-off of nearly 20% of the company’s ownership interest in Duke Energy Field Services LLC (DEFS) to partner ConocoPhillips, the sale by DEFS of the general partner of TEPPCO Partners LP to EPCO Inc. subsidiary Enterprise GP Holdings LP, and the sale of 2.5 million TEPPCO limited partner units to EPCO and affiliates.