Corp

Enron Energy Services (EES) inked its largest energy management outsourcing contract last Tuesday, as Suiza Food Corp., a Dallas-based manufacturer and distributor of dairy products, agreed to receive comprehensive energy management services at more than 50 manufacturing facilities in 24 states. The contract continues EES’ outsourcing success, marking the fourth major deal in the last five months.

Enron Corp. turned in second quarter results that beat WallStreet expectations. Also yesterday, Enron Energy Services (EES)announced its biggest energy outsourcing deal yet, and the parentcompany touted its nascent communications business to analysts,saying Communications, which plans to enter bandwidth trading, nowwill be classified as a core business. While the company’s energyservices business continued to lose money, it still appears to beon track to at least break even in the fourth quarter, the companyand analysts said.

Unocal Corp.’s Spirit Energy 76 unit completed the previously announced trade of most of its Rocky Mountain oil and gas assets to Tom Brown Inc (See NGI March 15, 1999). Unocal received 5.8 million shares of Tom Brown common stock (about 16.5%) and $5 million for the properties. The deal is worth about $76 million. Subject to certain restrictions and conditions, Unocal has the option to increase its stock ownership up to 19.5% through open market purchases. The sale agreement also entitles Unocal to nominate one director to the Tom Brown board.

Scana Energy Marketing and Exxon Corp. are urging FERC to delayor deny an extension of the experimental waivers and limitedjurisdiction blanket certificate that it approved for Atlanta GasLight (AGL) a year ago to promote retail gas unbundling in Georgia.

Scana Energy Marketing and Exxon Corp. are urging FERC to bedeliberative as it weighs Atlanta Gas Light’s (AGL) bid for anextension of the waivers and limited jurisdiction blanketcertificate that were approved on a limited basis a year ago toencourage retail gas unbundling in Georgia.

Unocal Corp.’s Spirit Energy 76 unit completed the previouslyannounced trade of most of its Rocky Mountain oil and gas assets toTom Brown Inc (See Daily GPI March 11,1999). Unocal received 5.8 million shares of Tom Brown commonstock (about 16.5%) and $5 million for the properties. The deal isworth about $76 million. Subject to certain restrictions andconditions, Unocal has the option to increase its stock ownership upto 19.5% through open market purchases. The sale agreement alsoentitles Unocal to nominate one director to the Tom Brown board.

Wisconsin Energy Corp., a Milwaukee, WI-based utility holdingcompany, kicked off the merger merry-go-round last week when itannounced plans to acquire WICOR Inc., the parent of a rival gasdistributor, for about $1.51 billion in cash, stock and debt,creating a major Midwest energy concern and the 13th largestutility in the nation.

Enogex Inc. completed its acquisition of Transok LLC, a gatherer,processor and transporter of natural gas in Oklahoma andTexas. Enogex, a subsidiary of OGE Energy Corp., announced plans May17 to buy Transok from Houston-based Tejas Gas LLC, an affiliate ofShell Oil Co. for $701 million (See Daily GPI May 18, 1999).

The Meridian Resource Corp. said flames still are shooting 150feet in the air from its Thibodaux No. 2 well near Amelia, LA, sixdays after the well was struck by lightening. The well wasscheduled to begin production in July with about 18 MMcf/d of gasand 1,800 b/d of condensate.