Houston-based Burlington Resources Inc., hoping to duplicate its success in the gas-rich San Juan Basin, on Tuesday agreed to purchase Calgary’s Canadian Hunter Exploration Ltd. for C$53 a share, or $2.1 billion in cash (C$3.3 billion), gaining about 1.2 Tcf and 6.2 million bbl of estimated proved reserves and nearly two million net undeveloped acres and seismic data. When the transaction closes, Burlington will have 90% of its production focused on North American natural gas, with 40% in Canada.
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Aquila Buys Western Hub, Lodi Storage
Hoping to take advantage of future volatility in the California gas and power markets, Aquila Inc. has formed a partnership with ArcLight Energy Partners Fund to purchase Houston-based Western Hub Properties LLC for $220 million. Western Hub is a natural gas storage development company that owns the proposed Lodi Gas Storage facility near Sacramento as well as rights to other potential storage sites near Bakersfield, CA, and San Antonio, TX. The acquisition is subject to the approval of the California Public Utilities Commission.
Aquila Buys Western Hub, Lodi Storage
Hoping to take advantage of future volatility in the California gas and power markets, Aquila Inc. has formed a partnership with ArcLight Energy Partners Fund to purchase Houston-based Western Hub Properties LLC for $220 million. Western Hub is a natural gas storage development company that owns the proposed Lodi Gas Storage facility near Sacramento as well as rights to other potential storage sites. The acquisition is subject to the approval of the California Public Utilities Commission.
CA Republicans Call for Special Session on Natural Gas Issues
Hoping to make some political points and address a somewhatforgotten side of California’s energy woes, the minority RepublicanParty leaders in the state legislature Monday asked Gov. Gray Davisto call a second, concurrent special session of the state lawmakersto address natural gas supply and price issues that are related tothe electricity crisis.
CA Power Market Awaits Bailout
California power watchers were hoping for results early thisweek from the marathon government-industry negotiations. Theprincipals of last Tuesday night’s marathon session were expectedto meet by video-conference over the weekend to review solutionsdeveloped by staff working groups, which met through the end of theweek. (see Daily GPI, Jan. 11)
Judge Rules Favorably for SoCal Ed
Hoping to reverse the momentum of adverse court and regulatoryactions that have pushed it to the brink of bankruptcy, SouthernCalifornia Edison Monday won a U.S. District Court lawsuit againststate regulators, upholding the utility’s right to recoverreasonable costs for purchasing power.
Industry Briefs
Hoping to benefit in both efficiency and cost savings, CompaqComputer Corp. inked an agreement with Enron Corp.’s Enron EnergyServices yesterday, a deal in which Enron will manage theelectricity, natural gas and energy-related management services forCompaq’s facilities in Texas, California and Massachusetts.Financial details for the five-year agreement were not disclosed.The deal between the two Houston-based corporations adds to thegrowing list of energy service management contracts Enron has inkedduring the past few years, which has ramped up this year. In earlySeptember, Enron Energy Services secured a 10-year $1 billionenergy management service agreement with Starwood Hotels andResorts Worldwide (see Daily GPI, Sept. 7). The energy services armof the marketing giant remains on track to reach its goal of $16billion in agreements this year, nearly double 1999’s total of $8.5billion. That’s up from $3.8 billion in energy agreements in 1998(see Daily GPI, May 31).
Electric Transmission Consortium Launches B2B Exchange
Hoping to foster a more robust wholesale power market, AmericanElectric Power (AEP), Carolina Power & Light (CP&L), DukeEnergy and Unicom Corp. are launching an independent,Internet-based electric transmission business-to-business exchangethis fall that is expected to offer a single portal for arrangingtransmission capacity. Still to come are the consortium’s serviceofferings and the type of technology it will use.
Electric Transmission Consortium Launches B2B Exchange
Hoping to foster a more robust wholesale power market, AmericanElectric Power (AEP), Carolina Power & Light (CP&L), DukeEnergy and Unicom Corp. are launching an independent,Internet-based electric transmission business-to-business exchangethis fall that is expected to offer a single portal for arrangingtransmission capacity. Still to come are the consortium’s serviceofferings and the type of technology it will use.
CMS Plans IPO for Consumers in Restructuring Effort
Hoping to inject life into its dwindling stock price, CMS EnergyCorp. announced drastic measures last week, including an aggressivestock buy-back plan and intentions to create a tracking stock forthe jewel in CMS’ crown — Consumers Energy.