Dallas-based Addison Energy Inc., a subsidiary of EXCO Resources Inc., has entered into an agreement to purchase Canadian oil and natural gas assets from an independent producer for $33.8 million cash (C$53.6 million). Doug Miller, EXCO’s CEO, said the closing date is currently anticipated to be mid to late December. The properties are principally located in one of Addison’s core production areas of Alberta. No seller was named. EXCO estimates total proved reserves of approximately 3.0 million bbl and natural gas liquids, and 21.4 Bcf. Net daily production in September was approximately 675 bbl and NGLs, and 4,305 Mcf. EXCO expects to fund the acquisition with cash and funds to be borrowed under Addison’s Canadian bank credit facility. EXCO is an oil and gas acquisition, exploitation, development and production company with principal operations in Texas, Louisiana, Mississippi and Alberta.
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EXCO Seals $34 Million Alberta Asset Acquisition
Dallas-based EXCO Resources Inc. reported Wednesday that Addison Energy Inc., a wholly owned subsidiary of EXCO, has completed the previously announced acquisition of some Alberta oil and natural gas assets from an independent Canadian producer (see Daily GPI, Nov. 28). No seller was named by the company.
Industry Brief
New York-based Amerada Hess reported as of midnight Monday that 99.64% of Dallas-based independent Triton Energy Ltd.’s shares have been”validly tendered” in response to its offer of $45/share. The company said it has accepted the shares for payment and plans to go forward in completing its acquisition of Triton. News that Amerada Hess would buy Triton Energy on July 10 sent Triton’s stock soaring nearly 50% on the New York Stock Exchange, opening at $14.57 and closing at $44.43 (see Daily GPI, July 11). The total transaction cost is estimated at $3.2 billion and will position Amerada Hess as one of the largest global independent E&P companies. It also agreed to assume $500 million of Triton’s debt. As a result of the accepted tender offer, the New York Stock Exchange suspended trading in Triton Energy Ltd. on Tuesday and will apply to the Securities and Exchange Commission to have the stock delisted.
Crosstex Acquires 520-Mile CCNG System
Dallas-based Crosstex Energy Services Inc. has acquired Corpus Christi Natural Gas Co. LP from an affiliate of Shell U.S. Gas & Power Co., The purchase includes CCNG’s gathering, processing, transmission, marketing and industrial pipeline affiliates. In a related transaction, which fits geographically with the CCNG purchase, Crosstex also acquired the 200-mile South Texas Pettus gathering system from Plains Resources. No financial details were disclosed.
Small Marketers Exiting Retail
The current natural gas market is proving a minefield for smallretail marketers, as evidenced by the drop-out rate. WesternNatural Gas, a Dallas-based marketing company, announced last weekit was phasing out its retail marketing business in the face ofincreasing natural gas prices and the capital requirementsnecessary to obtain supplies.
Pioneer Improves GOM, Canadian Holdings
Dallas-based Pioneer Natural Resources Co. said it plans toacquire the working interests in 12 non-producing Gulf of Mexicoblocks from a Baker Hughes Inc. subsidiary for $23 million. Theproperties include a one-third interest in the Marathon-operatedCamden Hills natural gas discovery in Mississippi Canyon 348, whichis expected to have gas production in 2002.
Futures Bounce Back as Bulls Regain Control
Dallas Cowboy fans are not alone. It has been a tough month ofSundays for natural gas bear traders as they have been forced towatch Friday’s downward price momentum gradually lose steam duringSunday evening Access trading, setting the stage for a pricerecovery when the regular open-outcry session re-opens Monday.
Industry Briefs
Dallas-based TXU has begun soliciting bids to sell about 250miles of a remote intrastate pipeline and distribution system inTexas in an effort to prune down some of its less critical assets.The system, inherited by TXU when then-Texas Utilities merged withLone Star Gas parent Enserch in 1997, runs through the West TexasPanhandle area, through an unincorporated region covering eightcounties. TXU’s Carol Peters said the company already has gotteninquiries about the short pipeline. “The sale is part of a trimmingdown process,” Peters said. “The company found that the pipelinewas not strategic to its critical assets in TXU’s long-term plan toremain competitive in the energy industry.” Peters said she did notknow if any other pipelines in the state would be sold, but saidreviews were an “ongoing process,” with TXU constantly reviewingall of its assets to ensure they contribute to earnings. “We alwayswant to make sure that all of our assets fit with where we’re goingas a company.” Most of the pipeline system consists of 12- and10-inch mainlines and smaller distribution lines through Coke,Coleman, Concho, Edwards, Runnels, Schleicher, Sutton and Tom Greencounties in the San Angelo area. TXU operates two natural gaspipeline systems across the state, consisting of TXU Lone StarPipeline, TXU Fuel Co. and TXU Processing Co. TXU Lone Star is theTexas intrastate pipeline that connects three major Texas marketcenters at Waha, Carthage and Katy. The pipeline system expected togo up for sale does not overlap with any of TXU’s electric serviceterritory in Texas.
Panda Energy Inks Transportation Agreement
El Dorado, AR is about to become much bigger and brighter on themap. Dallas-based Panda Energy International has moved one stepcloser in the process of creating what will be the largest naturalgas-fired power plant in the country. Panda announced that it hassecured transportation to meet the plant’s daily natural gas needs.
Panda Energy Inks Transportation Agreement
El Dorado, AR is about to become much bigger and brighter on themap. Dallas-based Panda Energy International has moved one stepcloser in the process of creating what will be the largest naturalgas-fired power plant in the country. Panda announced that it hassecured transportation to meet the plant’s daily natural gas needs.
