Mega

With few clues as to what the holdup could be, FPL Group Inc. and Entergy Corp. said Monday in a joint statement that “certain issues have arisen in connection with their pending merger,” and that they would meet in the “near future” to address the problems. The merger, announced last July (see Daily GPI, Aug. 1, 2000), was scheduled to close this fall.

Williams put together a mega-deal last week that will not only pay the bills, but ensure its liquidity through this year and into the next, finalizing several cash and credit transactions that total about $3.4 billion. New credit agreements were secured giving Williams about $2 billion, but to make those deals, Williams sold or guaranteed some of its solid income-producing assets — interests in two pipeline companies, Seminole and Mid-American, for $1.2 billion; natural gas properties in Wyoming for $350 million; gas properties in the Anadarko Basin for $37.5 million; and the Cove Point liquefied natural gas (LNG) facility for $217 million. Williams also backed a secured credit agreement, which was put together by Warren Buffett’s Berkshire Hathaway Inc., with “substantially all” of the assets of subsidiary Barrett Resources.

Speaking on his company’s pending mega-merger with Phillips Petroleum, Conoco CEO Archie Dunham told a Houston civic association that size does not matter much in a corporate merger; it’s how well the companies fit together that is important.

From mega majors to independents, producers’ earnings, which one year ago soared on record profit, glided to earth in the fourth quarter of 2001, knocked down by a world-wide recession, terrorist attacks that in turn reduced travel and lower energy prices. The first major to report, and the leader, Exxon Mobil Corp., reported a 49% drop in fourth quarter profits. Phillips Petroleum Corp. and Conoco, set to merge this year, followed with lower earnings. Independents also disclosed quarterly declines in reports from Burlington Resources Inc., Amerada Hess Corp., Kerr-McGee Corp., Ocean Energy Inc., Houston Exploration Co. and Cabot Oil & Gas Corp..

From mega majors to independents, producers’ earnings, which one year ago soared on record profit, glided to earth in the fourth quarter of 2001, knocked down by a world-wide recession, terrorist attacks that in turn reduced travel and lower energy prices. The first major to report, and the leader, Exxon Mobil Corp., reported a 49% drop in fourth quarter profits. However, independents also are feeling the pinch, as Burlington Resources Inc., Amerada Hess Corp. and Kerr-McGee Corp. all reported fourth-quarter declines.

In a move creating an entity that will challenge CMS EnergyCorp. for the title of Michigan’s largest gas and electric utility,DTE Energy Co. announced the purchase of MCN Energy Group yesterdayin a cash and stock transaction valued at $2.6 billion. Thecombined company will be headquartered in Detroit and named DTEEnergy Co. The merger is expected to be one of the speediest amongutilities, closing in six to nine months.

With few clues as to what the holdup could be, FPL Group Inc. and Entergy Corp. said last week in a joint statement that “certain issues have arisen in connection with their pending merger,” and that they would meet in the “near future” to address the problems. The merger, announced last July (see NGI, Aug. 7, 2000), was scheduled to close this fall.

With few clues as to what the holdup could be, FPL Group Inc.and Entergy Corp. said Monday in a joint statement that “certainissues have arisen in connection with their pending merger,” andthat they would meet in the “near future” to address the problems.The merger, announced last July (see Daily GPI, Aug. 1, 2000), wasscheduled to close this fall.

The mega-utility merger of Consolidated Edison (ConEd) andNortheast Utilities (NU) could be called off today. NU has toldConEd to provide assurances by 5 p.m. Monday that it intends to gothrough with the deal or else face legal action.