Increase

Northern Border Partners LP announced plans yesterday toincrease its position in the Powder River Basin with the purchaseof gas gatherer Bear Paw Energy LLC for $370 million from aconsortium of investors led by Bear Paw Energy Management and J.P.Morgan Partners.

El Paso Natural Gas “is willing to expand its system” to the California border if “sufficient support” for such a project can be demonstrated through long-term capacity contracts, the pipeline told FERC last week.

Pioneer Natural Resources board approved a 28% increase in its2001 capital budget compared to 2000 spending and announced a newhedging program weighted toward first quarter prices. Its spendingwill be weighted heavily toward natural gas development.

A decision is promised by spring on moving forward with aproject to increase natural gas production offshore of Nova Scotiaby at least 80%.

The Colorado Interstate Gas Co. officially filed a plan with theFederal Energy Regulatory Commission Dec. 4 to increase pipelinecapacity from its Cheyenne Hub area south to Front Range markets.CIG’s proposed $72 million expansion would include 84 miles of20-inch pipeline and two generators along the eastern slope of theRocky Mountains to a planned 480 MW power plant south of ColoradoSprings.

In an effort to realize more value for its shareholders, PlainsResources has decided to evaluate strategic restructuringalternatives to help increase the value, and value-creating abilityof its upstream and midstream business segments.

Citing a 34% average increase on year-to-date share priceswithin the U.S. electric power industry, Deutsche Banc Alex. Brownanalyst James Dobson initiated a watch of 18 generation and 15distribution companies in the firm’s U.S Electric Power Industryreport last week. The analyst and his associates also released alist of likely takeover candidates within the industry, and whichenergy companies’ subsidiaries are ripe for initial publicofferings (IPO) in 2001.

Capping a 12-day, 45% price increase, natural gas futures reversed lower yesterday as traders locked in profits amid technical and fundamental price uncertainty. The December contract took the sell-off squarely on the chin, dropping 46.7 cents or 7.5% to close at $5.798. The out months also felt the sting as the winter strip (Dec.-Mar.) tumbled 37.8 cents to $5.537 and the 12-month strip retraced 29.9 cents to $4.821.

Citing a 34% average increase on year-to-date share priceswithin the U.S. electric power industry, Deutsche Banc Alex. Brownanalyst James Dobson initiated a watch of 18 generation and 15distribution companies in the firm’s U.S Electric Power Industryreport.