Initial

In the midst of injecting 3.5 Bcf of cushion gas, Western Hub Properties indicated last Tuesday that its initial commercial start up for California’s second merchant underground storage project will begin in mid-December with about two-thirds of the project’s 12 Bcf working capacity under contract, according to Western Hub’s California project manager, Jim Fossum.

In the midst of injecting 3.5 Bcf of cushion gas, Western Hub Properties indicated Tuesday that its initial commercial start up for California’s second merchant underground storage project will begin in mid-December with about two-thirds of the project’s 12 Bcf working capacity under contract, according to Western Hub’s California project manager, Jim Fossum.

Aquila Inc., whose initial public offering opened with a flourish on Wall Street last spring, is essentially one year ahead in its earnings per share (EPS) forecast, and is on track to continue to deliver 25% growth into 2002, according to executives presenting third quarter earnings on Monday. The Kansas City, MO-based company, a subsidiary of UtiliCorp United Inc., reported net income of $37.2 million, or $.37 per share, an increase of 37% over the third quarter a year ago, when earnings posted were $.27 per share, or $23 million of net income. UtiliCorp offered Aquila as an IPO last April (see Daily GPI, April 25).

Questar Corp.’s initial results from the 2001 drilling and completion operations on the Pinedale Anticline in western Wyoming are encouraging enough to warrant more drilling and additional gathering facilities, company officials said last week, projecting that based on the new results, oil and gas production at year-end 2001 could triple over year-earlier levels.

Questar Corp.’s initial results from the 2001 drilling and completion operations on the Pinedale Anticline in western Wyoming are encouraging enough to warrant more drilling and additional gathering facilities, company officials said Monday, projecting that based on the new results, oil and gas production at year-end 2001 could triple over year-earlier levels.

Pure Resources Inc. announced Wednesday that its subsidiary, Pure Resources II Inc., has successfully completed its initial tender offer and subsequent offering period for all of the outstanding shares of Hallwood Energy Corp. common stock at a price of $12.50 per share and all the outstanding shares of Series A Cumulative Preferred Stock of Hallwood Energy at a price of $10.84 per share. As of May 15, Pure Resources reported that it had accepted for payment approximately 86% of Hallwood Energy’s common stock and 81% of the company’s Series A Cumulative Preferred Stock. Pure Resources first reported the $268 million acquisition of Hallwood Energy in early April (see Daily GPI, April 2). The companies said completion of the merger would occur as soon as practicable. Pure Resources is an independent exploration and production company that develops and produces oil and natural gas in the Permian Basin, the San Juan Basin, the Gulf Coast, and the Gulf of Mexico. Denver-based Hallwood Energy is a public oil and gas company with properties primarily located in the Permian Basin, the San Juan Basin, South Texas and onshore South Louisiana.

Reliant Resources, the second energy IPO in as many weeks, lit up the New York Stock Exchange with its initial public offering last Wednesday as the most active stock in heavy trading. The Houston-based unit of Reliant Energy opened the day at a stock price of $30 — a price that has increased four times since December–and ended 10% up, closing at $33.02 on its first day.

Reliant Resources, the second energy IPO in as many weeks, lit up the New York Stock Exchange with its initial public offering yesterday as the most active stock in heavy trading. The Houston-based unit of Reliant Energy opened the day at a stock price of $30 — a price that has increased four times since December — and ended 10% up, closing at $33.02.

California Gov. Gray Davis on Friday signed a short-term measure(AB 7X) to allow the state to get into the bulk power spotpurchasing business immediately. He also ordered the state waterresources department to begin setting up a power auction processanticipating it will be authorized by another new state law thatwill be finalized this week to seek long-term electricitycontracts. Observers and market participants, however, say themeasures probably are inadequate to solve the state’s currentsupply crisis.