Finds

While it is still too early to see if others in the industrywill follow the lead, Sempra Energy is not looking back afterdropping out of four major energy trade associations at year-end.Strategic direction, as much as cost-savings, was the key driver inthe $5 billion holding company’s decision, according to a seniorexecutive responsible for implementing the new direction. The moveis expected to save Sempra several million dollars annually in duesand expenses related to its employees’ participation.

A study of 10 of the largest U.S. natural gas pipelines showsthey can expect to collectively derive a total of $42.5 millionannually in savings from Gas Research Institute technologies over afour-year period from 1997 to 2000, GRI said.

Prosper Business Development Corp., a Columbus, OH-basedconsulting and marketing firm, released an addendum to a previousreport on deregulating energy markets yesterday, citing a new listof pitfalls in the changing energy environment. The report,”Accelerating Energy’s Challenge to Change,” is intended to enhanceenergy marketers’ profitability as they enter deregulating markets.

Mitchell Energy & Development Corp. said the rebound inenergy prices raised its second quarter average gas pricerealizations 30% and pushed gas liquids price realizations up 25%compared to first quarter amounts. Combined with cost cutting gainsand other operating efficiencies implemented over the past year,Mitchell said the improvements should result in quarterly earnings(excluding oil and gas property sales) that will be three timesgreater than the First Call consensus estimate of 13 cents pershare.

Following the lead established late Monday, natural gas futurescontinued higher yesterday day as short-term traders bought intothe rally. The August contract closed up 3.2 cents at $2.176,shortly after notching its $2.18 high trade for the day.

California energy regulators last week identified 10 items forpotential natural gas industry restructuring, most of which dealwith wholesale or large customer operations. State regulators alsoencouraged utilities and large customers to cease their bickeringand come up with a broad-based settlement on gas unbundling.

California energy regulators yesterday identified 10 items forpotential natural gas industry restructuring, most of which dealwith wholesale or large customer operations. State regulators alsoencouraged utilities and large customers to cease their bickeringand come up with a broad-based settlement on gas unbundling.

Pioneer Natural Resources, a Dallas-based independent producer,announced an agreement last week to sell $245 million in oil andgas properties to Prize Energy Co., a Tulsa, OK-based producer.Last month, Pioneer had planned to sell most of these same assetsto Costilla Energy, but Costilla was unable to close the deal (seerelated story this issue). The Prize acquisition is expected toclose June 29 with an effective date of July 1.

Pioneer Natural Resources, a Dallas-based independent producer,announced an agreement Monday to sell $245 million worth of oil andgas fields to Prize Energy Co., a Tulsa, OK-based producer. Lastmonth, Pioneer had planned to sell most of these same properties toCostilla Energy, but Costilla was unable to close the deal. ThePrize acquisition is expected to close June 29 with an effectivedate of July 1.