Exit

Trendlines, like exit polls for statisticians, can tell marketwatchers a lot about the direction in which things might beheading. And while some statisticians in political arena might bewell-advised to take a closer look at their rules and procedures oflate, technicians in the natural gas arena have had a pretty easytime forecasting market moves. Since smashing into long-termtrendline support on Oct. 31, the market has resumed its uptrendand erupted a dollar higher, leaving even the mostdyed-in-the-wool bear traders second guessing their stripes.December futures finished strongly again Wednesday, up 25.7 centsat $5.338.

PG&E Energy Services all but completed its exit from theunregulated energy commodity and related services businesses withthe announcement last week it has sold its remaining servicecontracts and related assets to a unit of Chevron Corp. Thecontracts cover commercial, industrial and institutional customersspread around the country. The two San Francisco-based companieswould not disclose terms of the deal, but said it is expected toclose in mid-July.

PG&E Energy Services all but completed its exit from theunregulated energy commodity and related services businesses withthe announcement Thursday that it has sold its remaining servicecontracts and related assets to a unit of Chevron Corp. Thecontracts cover commercial, industrial and institutional customersspread around the country. The two San Francisco-based companieswould not disclose terms of the deal, but said it is expected toclose in mid-July.

Bulls never had a chance yesterday when natural gas futures werehit with two distinct waves of selling pressure as traders unloadedlong positions. Sources said early options-related liquidation wasreplaced by storage and market-on-close selling in the afternoon,and that was enough to delivered the expiring April contract 6.3cents lower to its final resting place at $2.90. The prompt monthin waiting, May, followed suit by also slipping 6.3 cents to closeat $2.908.

TransCanada PipeLines has taken the first steps in a bold planto divest $3 billion in assets in its Canadian midstream,international and refined products transportation businesses. Thecompany sold subsidiary NovaGas Canada LP’s Provost gas plant andgathering system to a subsidiary of Midcoast Energy Resources Inc.last week for an undisclosed sum and completed the sale of its PeshCreek processing complex and East Australia pipeline system earlierthis month. The total value of the two Canadian processing planttransactions comes to about $42 million.

TransCanada PipeLines has taken the first steps in a bold planto divest $3 billion in assets in the Canadian midstream,international and refined products transportation businesses. Thecompany sold subsidiary NovaGas Canada LP’s Provost gas plant andgathering system to a subsidiary of Midcoast Energy Resources Inc.yesterday for an undisclosed sum and completed the sale of its PeshCreek processing complex and East Australia pipeline system earlierthis month. The total value of the two Canadian processing planttransactions comes to about $42 million.

Heavy merger activity is impacting the wholesale energymarketing segment, causing several of the top-20 marketers of 1998to exit the market, and spurring other companies to acquire assetsand start online trading, a new study has found.

Western Resources yesterday threatened to cut its losses andsell the company to a national energy conglomerate because of adecision by the Kansas Corporation Commission (KCC) to reopen thedocket on its merger with Kansas City Power and Light. The KCCissued an order late Monday to reopen the merger docket because ofa stipulation and agreement Western signed with the Missouri PublicService Commission staff and others in the Missouri docket.

In October AGL Resources will become the first gas utility in the U.S. to completely exit the gas merchant function, but its transformation is far from over, AGL CEO Walter Higgins said last week. Higgins expects his company to be snatched up like the first pie out of the oven, probably by some hungry electric firm eager to get its hands on a utility that has emerged from deregulation relatively well done.