Exiting

A Shell Oil Co. affiliate, Shell Energy Services LLC, is exiting the Ohio retail electricity market and the Texas Electric Choice program in part because of the slowdown in deregulation and the volatility in energy prices over the past year.

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.

Coho Energy is exiting bankruptcy protection with new seniormanagement and a new bank facility. Coho and five of its affiliatesfiled for Chapter 11 Aug. 23. At the time, Coho listed totalliabilities of $425 million. Under the reorganization plan, Coho’sthree largest institutional bondholders converted their debt into90% of the equity of the reorganized company. These bondholdersalso provided the majority of the $72 million of subordinatednotes, as provided under the reorganization plan. The bondholdersare Appaloosa Management, Oaktree Capital Management and PPMAmerica.

Almost a year after it entered Chapter 11 bankruptcy,Houston-based TransTexas Gas Corp.’s reorganization plan tookeffect as the company arranged $52.5 million in exit financing.TransTexas amended its existing DIP Credit Agreement and RevolvingAccounts Receivable Credit Facility, cancelled existing securitiesand issued new securities. This is the final step in emergence fromChapter 11, which began April 19, 1999.

Dynegy announced the sale of all of its gasification assets toCincinnati-based Global Energy Inc. for an undisclosed sum lastweek, effectively exiting the Houston-based company from thegasification business. The sale, which the companies said willclose by the end of the year, is not expected to impact Dynegy’searnings.

Dynegy announced the sale of all of its gasification assets toCincinnati-based Global Energy Inc. for an undisclosed sumyesterday, effectively exiting the Houston-based company from thegasification business. The sale, which the companies said willclose by the end of the year, is not expected to impact Dynegy’searnings.

Westcoast Energy dealt the 650 MMcf/d TriState Pipeline project a potentially fatal blow last week by exiting the project partnership, which now includes only CMS Energy, and signing on with TriState’s main competitor, the 1 Bcf/d Vector Pipeline. Westcoast dropped its 33% stake in TriState and purchased a 30% equity stake in Vector from project operator Enbridge Inc. It also committed to take 240 MMcf/d of firm capacity in the $500 million Vector project.

Walter Higgins, CEO of AGL Resources Inc., stood and faced themusic recently at the annual shareholders meeting in Atlanta asstock owners voiced their opinions concerning AGL Resources’subsidiary Atlanta Gas Light’s (AGL) over-billing controversy. Thecompany’s earnings did nothing to ease shareholders’ pain. AGLResources’ revenues for this quarter were down $75.2 million from1997 to $323.9 million. Operating margins fell from $145.1 millionin the year-ago quarter to $136.9 million for the quarter endedDec. 31. Weather and poor results stemming from the company’spartnership with Sonat caused the poor performance.