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ChevronTexaco Natural Gas, to be headquartered in Houston and staffed by as many as 100 energy traders, will enter the wholesale energy merchant business in April, backed by a corporate “AA” credit rating, strong finances resources and perhaps as important, no “baggage,” after severing long-term natural gas purchase and sales contracts with Dynegy Inc. on Friday.

ChevronTexaco Natural Gas, to be headquartered in Houston and staffed by as many as 100 energy traders, will enter the wholesale energy merchant business in April, backed by a corporate “AA” credit rating, strong finances resources and perhaps as important, no “baggage,” after severing long-term natural gas purchase and sales contracts with Dynegy Inc. on Friday.

The Houston Exploration Co., headquartered in Houston, announced new hedges for 2003, committing 40,000 MMBtu/d of the company’s 2003 annual production at a swap price of $3.19/MMBtu. Earlier this month, Houston Exploration announced it had entered into an agreement to purchase South Texas properties from Conoco Inc. for $69 million. The new hedges will ensure the necessary cash flow to fund planned development in these properties in 2003, the company said in a written statement. Houston Exploration expects the transaction to close on Dec. 31, 2001 with an effective date of Jan. 1, 2002. The company’s hedging strategy is part of a corporate risk management program used to achieve more predictable cash flows. For 2002, current hedged volumes total 210,000 MMBtu/d with an average effective floor of $3.40 and an average effective ceiling of $4.66. Hedged volumes represent approximately 72%-77% of Houston Exploration’s 2002 estimated production volumes.

Holding company UGI Corp., headquartered in Valley Forge, PA, reported Tuesday that its net income was up 28% over a year ago, standing at $2.10 per diluted share for the fiscal year ended Sept. 30, 2001 compared with $1.64 for the same period of 2000. For the third quarter, UGI recorded a seasonal net loss of $0.40 per diluted share, excluding a one-time charge, compared to a loss of $0.39 per diluted share in the third quarter of 2000. UGI previously reported that it expected fiscal year 2001 net income to be $2.05, net of one-time items.

Energy North Inc., an independent headquartered in Calgary, has entered into a joint venture agreement giving it the opportunity to earn access to lands by drilling in the Alberta foothills. It also has acquired what it called a significant land position in the project area in a joint venture project. Drilling is expected to begin nearly next year.

Shareholders of Vancouver-based Westcoast Energy Inc. will vote Dec. 13 on the proposed takeover of the company by Duke Energy Inc., headquartered in Charlotte, NC. Westcoast said Wednesday that if shareholders approve the $8.5 billion takeover, the Duke acquisition will be completed by the end of March 2002. Westcoast is one of Canada’s biggest energy companies, with assets of about C$15 billion and interests in natural gas pipelines, power generation and energy services. Duke Energy had revenues of more than $49 billion in 2000.

Avista Corp., headquartered in Spokane, WA, announced Wednesday it plans to implement several measures to improve its liquidity, conserve cash and reduce its debt. Rocked by internal problems and federal investigations of its Avista Energy unit that resulted in a $2 million fine, the company plans to sell 50% of its stake in the 280 MW Coyote Springs 2 power project under construction near Boardman, OR, to Mirant and reduce its utility capital expenditures by $15 million through the end of this year and another $40 million in 2002.

EEX Corp., headquartered in Houston, reported third quarter 2001 net income of $16 million, or $0.39 per share, compared to a net loss of $2 million, or ($0.04) per share for the third quarter of 2000. The current quarter’s net income includes net after-tax gains from the sale of assets of $20 million in assets, primarily arising from the sale of the Llano Field in September 2001. Excluding these gains on asset sales, the third quarter of 2001 resulted in a net loss of $4 million or ($0.09) per share. Revenues for the third quarter of 2001 were $48 million, compared to $66 million for the same quarter last year. Natural gas production volumes were 122 MMcf/d, 17% lower quarter-to-quarter, primarily as a result of the sale of the offshore Gulf of Mexico shelf properties in December 2000. Average natural gas prices also were 11% lower quarter-to-quarter. The company produced approximately 11 Bcf during the third quarter of 2001 and received an average price of $2.89/Mcf, compared to 14 Bcf and $3.25/ Mcf in the third quarter of 2000. Crude oil production was down 6% and average prices decreased 24% quarter to quarter. Expenses for the third quarter of 2001 were $41 million, compared to $52 million for the same period of 2000, excluding the impact of asset sales in each period. CEO Tom Hamilton noted that EEX’s average total production from onshore U.S. business rose 7% from the first quarter to 130 MMcfe/d during the third quarter, and that “practically all of our capital spending during the third quarter was invested in development of our onshore properties.” He said the drop in natural gas prices will “likely” cause the company to defer some capital spending in the onshore program until prices improve.

Clayton Williams Energy Inc., an independent headquartered in Midland, TX, has closed the sale of oil and gas assets in three East Texas fields to Samson Lone Star Ltd. Partnership. The assets were purchased in 1998 from Sonat Exploration Co. for approximately $46.5 million. Clayton Williams owned 10% of the assets and a subsidiary was general partner for a limited partnership with an affiliate of GE Capital Oil & Gas, which owned the remaining 90%. Under the limited partnership agreement, Clayton Williams’ general partnership interest increased to 35% from 1% after the limited partner received a pre-agreed rate of return. Clayton Williams plans to use the net proceeds from the sale, estimated to be $15.8 million, to reduce its outstanding bank debt and for general corporate purposes. The company also expects to report a third quarter gain of about $10.5 million on the transaction.