Pennzoil Co. and Quaker State Corp. completed a majorrestructuring designed to separate the companies’ automotivebusinesses from exploration and production operations. Therestructuring includes the spin-off of Pennzoil’s Products Groupand combines the marketing, manufacturing and fast oil changebusinesses of Pennzoil with all of Quaker State. The combinedcompany, Pennzoil-Quaker State Co. trades on the New York StockExchange with the symbol PZL.
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Devon Energy Corp. and Canadian-based Northstar Energy Corp.completed their merger, which was announced June 29. Devon isissuing about 16.1 million common equivalent shares to theNorthstar shareholders. In addition, Devon is assuming US$312million in existing Northstar debt. Northstar shareholders arereceiving 0.235 exchangeable shares for each Northstar share. Witha total capitalization of $1.9 billion, the merged company DevonEnergy Corp. is one of the top 15 U.S.-based independent oil andgas producers. The company is balanced with 54% of its provedreserves in the United States and 46% in Canada and has totalproved reserves of about 300 million Boe.
Dynegy, NRG Buying SDG&E Generation
San Diego Gas & Electric (SDG&E) completed divestiture ofall its fossil-fueled generation with the selection of Dynegy Inc.and NRG Energy Inc. as the joint winning bidder for its 951 MWEncina Power Plant in Carlsbad, CA.
Nova Scotia Power Buys Into Maritimes
Nova Scotia Power Inc. completed the purchase of a 12.5%interest in the Maritimes & Northeast Pipeline (M&NP)project. This purchase represents a total investment of about $200million.
Devon, Northstar Complete Merger
Devon Energy Corp. and Canadian-based Northstar Energy Corp.completed their merger, which was announced June 29 (see NGI July6, 1998). Devon is issuing about 16.1 million common equivalentshares to the Northstar shareholders. In addition, Devon isassuming US$312 million in existing Northstar debt.
AEP Closes Deal on Equitable Midstream Assets
AEP Resources Inc., a wholly owned subsidiary of AmericanElectric Power, completed the purchase of the midstream gasoperations of Equitable Resources Inc.
Oneok Pays $54 Million for 75 Bcfe Reserves
Oneok completed two reserve acquisitions totaling $54 millionwith estimated proven reserves that could exceed 75 Bcfe. Bothdeals are for primarily natural gas reserves in Oklahoma. Acash-for-stock agreement was made to acquire the privately heldOklahoma properties of Anderman Oil Corp., AOL Holdings Inc., andMohan Petroleum Oklahoma Inc. The purchase price is $28.5 million,subject to certain adjustments, with an effective date of Aug. 1,1998. Oneok also will acquire properties from St. Mary Land &Exploration Co. for $25.5 million, subject to adjustments, with aneffective date of Sept. 1.
Briefs
Williams completed its Cherokee expansion project, increasingcapacity on the Transcontinental Gas Pipe Line (Transco) system by87 MMDth/d to provide additional firm transportation capacity toserve markets in Georgia. The $68 million project consisted ofadding looping and compression.
UPR Finishes Canadian Asset Sales
Union Pacific Resources Group Canadian subsidiary Union PacificResources Inc. (UPRI) has nearly completed its 1998 propertydivestiture program. The company expects to close on the finalproperty in the original offering later this year and projects its1998 non-core property sales program will top $143 million.
Industry Reports Progress On Y2K Efforts
Almost a third of gas and oil companies surveyed expect to havecompleted Year-2000 (Y2K) remediation by the end of the year,according to the results of a new survey by the Natural Gas Council(NGC). It further found that 73% said they would be ready by June1999, while all respondents indicated they would be prepared byDecember 1999.