Burlington Resources Inc. this week filed updated pro forma financial information with the Securities and Exchange Commission (SEC) regarding its pending acquisition of Poco Petroleums Ltd. to include third quarter results of combined operations. Shareholders of Calgary-based Poco yesterday approved the C$2.6-billion takeover that would create North America’s fourth-largest gas producer.
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Burlington Takeover of Poco Progresses
Burlington Resources Inc. this week filed updated pro formafinancial information with the Securities and Exchange Commission(SEC) regarding its pending acquisition of Poco Petroleums Ltd. toinclude third quarter results of combined operations. Shareholdersof Calgary-based Poco yesterday approved the C$2.6-billion takeoverthat would create North America’s fourth-largest gas producer.
Columbia Looks to Boost Investments in Power
Columbia Energy Group is planning some significant investmentsin wholesale power generation and possibly foreign utilities andhas filed a request with the Securities and Exchange Commission toexpand its authority under the Public Utility Holding Companies Actto make such investments. Columbia told the commission it wants tobe able to invest an amount equal to 100% of its annual earnings.It currently is authorized to invest only 50% of its earnings insuch projects.
KCBT Converting Western Contract to Basis
Hoping to stir up liquidity on its western gas futures contract,The Kansas City Board of Trade (KCBT) filed Oct. 8 with theCommodity Futures Trading Commission (CFTC) to convert the contractfrom flat-price to basis. The exchange plans to begin trading basisfutures with the February 2000 contract month upon CFTC approval.The expected start date of basis futures is Nov. 29.
KCBT Converting Western Contract to Basis
In a move it hopes will boost liquidity on its western gasfutures contract, The Kansas City Board of Trade (KCBT) filedFriday with the Commodity Futures Trading Commission (CFTC) toconvert the contract from flat-price to basis. The exchange plansto begin trading basis futures with the February 2000 contractmonth upon CFTC approval. The expected start date of basis futuresis Nov. 29.
ACN Energy Accuses SoCalGas of Misleading Customers
ACN Energy, a gas supplier to thousands of consumers inCalifornia, filed a formal complaint last week to the CaliforniaPublic Utilities Commission (CPUC) concerning distribution feestatements sent out to ACN customers by Southern California Gas(SoCalGas). The complaint accuses SoCalGas of mailing ACN customersstatements that falsely imply SoCalGas is their gas provider. As aresult, ACN said some of its customers have mistakenly andneedlessly sent checks to SoCalGas.
Western, KCPL File Settlement at FERC
Western Resources and Kansas City Power & Light filed withthe FERC a settlement relating to market power, transmission andcustomer protection issues stemming from the planned merger of thetwo companies. Staff of the Federal Energy Regulatory Commissionand other major parties to the case support the filing, accordingto Western.
OH PUCO Gives Nod to Dominion-CNG Deal
The Public Utility Commission of Ohio (PUCO) filed a statementwith the federal Securities and Exchange Commission (SEC)supporting the merger of Dominion Resources Inc. and ConsolidatedNatural Gas Co. The PUCO told the SEC that the agency wouldcontinue to exercise jurisdiction over the regulated activities ofThe East Ohio Gas Co., CNG’s gas distribution company in Ohio, andthat the merger would have no impact on its ability to protect theinterests of Ohio ratepayers. The PUCO’s approval is not needed,but the commission conducted a review at the request of East OhioGas.
Industry Briefs
Pioneer Natural Resources USA Inc. filed a preliminary proxystatement with the SEC regarding a proposed merger with the limitedpartners of 25 publicly-held Parker & Parsley limitedpartnerships. According to the plan, each partnership that approvesthe proposals will merge with Pioneer and their partnershipinterests will be converted into the right to receive cash. At thesame time, Pioneer also is offering to acquire 21 non-publiclimited partnerships and 13 privately-held employee partnershipsthrough mergers for cash. Pioneer is the sole or managing generalpartner of all of the partnerships. As a result of the mergers,Pioneer will acquire additional working interests in wellspredominantly located in the Spraberry field in the Permian Basinof West Texas. If approved, the mergers are expected to add twomillion barrels of oil equivalent production next year. The amountof cash Pioneer USA will pay for the partnership interests will bebased on the partnerships’ reserve value plus net working capital(less expenses and fees of the mergers) as of Sept. 30. Undercurrent Nymex futures strip prices, Pioneer estimates that its cashoffer would be $60 million. However, it also said it will consideroffers from third parties to purchase any partnership or itsassets. Persons interested in making an offer should contactTimothy L. Dove or Mark L. Withrow at (972) 444-9001 before Nov. 1.
Costilla Files for Chapter 11
Costilla Energy Inc., a Texas-based producer with assets inSouth Texas and the Permian Basin, reported last week it has filedfor Chapter 11 with the U.S. Bankruptcy Court in Midland, TX. Thecompany said despite this setback, its oil and gas operations willcontinue without interruption. The company did not return phonecalls by press time.