Semco Energy reported net income of $12.0 million or $0.67 pershare for the first quarter of the year a 12% increase from the$0.60 per share on net income of $10.4 million for the firstquarter of 1999. “We are off to a good start in meeting our goalsfor the year, despite the third year in a row of warmer than normalweather,” said CEO William L. Johnson. “Had temperatures for theperiod been normal, we would have reported record first quarterearnings of approximately $0.82 per share in 2000 compared toweather-normalized earnings of $0.63 per share in 1999.” Theincrease in earnings was attributable primarily to higher earningsfrom gas distribution, offset partially by seasonal losses from itsconstruction business. Volumes of gas sold and transportedincreased from 25.2 Bcf in the first quarter of 1999 to 39.3 Bcf inthe first quarter of 2000. The increase is attributed primarily tothe operations of the recent acquisition in Alaska offset partiallyby the impact of warmer weather. Temperatures for the first quarterof 2000 were 11% warmer than normal and also warmer than the firstquarter of 1999 when temperatures were 2% warmer than normal.
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DPL Inc. announced it has sold its financial interest in MarketHub Partners (MHP) to a subsidiary of NiSource for $29 million incash. This sale follows DPL’s recent announcement of the sale ofits natural gas retail distribution business to Indiana Energy. MHPis a natural gas storage company headquartered in Houston. DPL wasrequired to separate its electric business units with the Julypassage of Ohio electric restructuring legislation. In so doing,the company said it was going to explore options for its gasbusinesses while focusing on electric generation. DPL said it hascontinued to expand its natural gas-fired generation business withthe addition of 475 MW through two plans called “Phases One” and”Two.” Two more phases, which have yet to be announced, willincrease that capacity by 320 MW. These expansions are occurring inboth Ohio and Indiana, DPL said, and will be immediately accretiveto earnings as these units come online starting in the summer of2000.
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.
Southern Union has completed its merger with PennsylvaniaEnterprises. “The prompt completion of this merger is a vote ofconfidence by our regulators and shareholders, as well as thefinancial community,” said Southern Union President Peter H.Kelley. PEI shareholders will receive 1.59 shares of Southern Unioncommon stock and $3 in cash for each share of PEI common stock.Southern Union also announced a stock repurchase program not toexceed $40 million. It is issuing 17 million shares of common stockand is paying $32 million in cash in connection with thistransaction. In addition, on Oct. 5 Southern Union announced amerger agreement with Fall River Gas, a gas distributor serving48,000 customers in southeastern Massachusetts. The transaction,valued at $75 million.
Despite a sharp increase in drilling activity recently,financial reports from 21 large producers, representing about 32%of total U.S. gas production, show a gas production decline of 4%from last year’s third quarter levels and 3% from the first ninemonths of 1998.
Despite a sharp increase in drilling activity recently,financial reports from 21 large producers, representing about 35%of total U.S. gas production, show a decline of 4% from last year’sthird quarter gas production and 3% from the first nine months of1998.
Much like the rest of the majors, Phillips Petroleum is back ontrack in terms of strong financial results with $221 million in netincome in the third quarter, up from $46 million for the sameperiod last year. But CEO Jim Mulva said the sale of its midstreamGPM business, and possible “joint venturing” of its chemicals,refining and marketing operations are still on. The GPM sale isexpected to take place before the end of the year.
The Financial Accounting Standards Board (FASB) issued a proposal for public comment that would, among other things, eliminate the pooling of interests method of accounting for business combinations. The move is directed at enhancing economic accountability and could act as a curb on questionable transactions. As part of its public consideration of the issues, the Board also will hold hearings on the subject early next year in New York and San Francisco. Comments on the proposal are requested by Dec. 7.
The Financial Accounting Standards Board (FASB) issued aproposal for public comment that would, among other things,eliminate the pooling of interests method of accounting forbusiness combinations. As part of its public consideration of theissues, the Board also will hold hearings on the subject early nextyear in New York and San Francisco. Comments on the proposal arerequested by Dec. 7.
The financial troubles of Coho Energy reached a new level lastweek as the Dallas-based company received a formal notice from itslenders that the obligations under its $240 million credit facilityhave been accelerated and the lenders intend to exercise all rightsand remedies to satisfy those obligations.