Corp

Occidental Petroleum Corp. reported a $28 million increase innet income for the second quarter compared with 2Q97. Resultsreflected a $290 million pretax gain from the sale of certain oiland gas assets. Earnings before special items were $47 million forthe second quarter of 1998, compared with $138 million for the sameperiod in 1997, reflecting lower crude oil prices.

PG&E Corp. said second quarter earnings suffered because ofcosts associated with electric restructuring and its sale ofAustralian assets to Duke Energy. The company reported earnings of46 cents per share, compared to 49 cents per share for thecorresponding quarter in 1997, and net income of $174 million,compared with $193 million in 2Q97. A lower rate of exchangebetween the Australian and U.S. dollar resulted in a six-centcharge taken during the second quarter, PG&E said.

Dynegy Inc., formerly NGC Corp. has purchased ComptonPetroleum’s Canadian midstream assets, including 78 miles ofpipelines, and the 82 MMcf/d Mazeppa and 15 MMcf/d Gladysprocessing plants in southern Alberta, for C$60 million. The dealalso includes a transportation, processing and revenue sharingagreement whereby Compton is assured processing and transportationcapacity at set rates and is paid a fee for bringing in new wellsand production.

Nicor Inc., whose principal business includes Nicor Gas, andDynegy Inc., formerly NGC Corp., yesterday announced they haveformed a strategic alliance to jointly pursue wholesale generationand cogeneration power plants in six states in the Midwest.

New York State Electric & Gas Corp. (NYSEG) voiced itssupport for legislation to give states authority to modifynon-utility generator contracts. Congressmen Gerald Solomon, AmoryHoughton (R-NY) and Edolphus Towns (D-NY) introduced HR 4183, whichwould clarify the Public Utility Regulatory Policies Act of 1978.Changes proposed are said to ensure just and reasonable costs forNUG power sold to utilities. State regulators would be permitted tomodify prices utilities are currently required to pay non-utilitygenerators so they do not exceed the market price of electricity atthe time of delivery. The legislation also would establish programsto monitor non-utility generators to ensure they continue to meetFederal Energy Regulatory Commission requirements.

Enron Energy Services has signed General Cable Corp. to anenergy management and supply contract covering 22 U.S. facilitiesthat will tie the price level mainly to General Cable’s business.Pricing for the multi-year contract valued at $120 million will betied to the pounds of copper consumed, feet of cable produced andweather conditions experienced during the company’s productionprocess. The rationale is that if more cable is produced, moreenergy will be used and the unit price then would be lower.

The $6.2 billion merger of Enova Corp. and Pacific Enterprisesfinally became official last week following approval of theSecurities and Exchange Commission. The merger creates SempraEnergy, a new San Diego-based Fortune 500 energy services holdingcompany with 12,000 employees, $10 billion in assets and thelargest regulated utility customer base in the nation.

Dynegy Inc. (formerly NGC Corp.) sold its Haynesville, LA, gasprocessing and fractionation facility and related gas and gasliquids pipeline systems to Duke Energy Field Services. The sale ofthe non-strategic asset continues the rationalization of certaingas processing plants acquired from Trident and Chevron, which hasresulted in greater operating efficiencies and lower costs, Dynegysaid.

The D.C. Court of Appeals last week rejected a challenge bySouthwest Gas Corp. to the capacity-release program of El PasoNatural Gas.