Williams Field Services (WFS) told its midstream customers that they would be able to submit all nominations to the GasKit system for all cycles Wednesday, according to a posting Tuesday on the Kern River bulletin board. In announcing the restoration of GasKit service, WFS said it will no longer accept faxed nominations. Unfortunately, the company went on, the data on GasKit reports will not be accurate for the gas days of Dec. 5 through Dec. 12. “We will update this data, including shipper imbalances, as soon as possible and will post a notice communicating when the data is reliable,” it said. Presumably this announcement related to last week’s flooding at Williams headquarters in Tulsa, which knocked out the EDI (electronic data interchange) server for WFS nominations at the Opal Plant, where there has been a dearth of trading recently. However, a Williams spokesman could not be reached for confirmation.
Midstream
Articles from Midstream
Atlas to Construct New 120 MMcf/d Plant in Oklahoma
Midstream operator Atlas Pipeline Partners LP said late Wednesday it will construct a 120 MMcf/d cryogenic natural gas processing plant in Beckham County, OK. The Sweetwater gas plant will be located west of the Atlas Elk City gas plant, and is expected to be completed by the third quarter of 2006.
Questar Posts 32% Increase in 2004 Net Income, Boosts Production 12%
Strong growth in its exploration and production business and midstream operations led to a 32% increase in Questar Corp.’s net income in 2004 to $229.3 million ($2.67/share). The company posted a 12% increase in natural gas and oil-equivalent production and realized a 15% increase in natural gas prices. Performance for the fourth quarter also was impressive with a 23% increase in net income to $73.7 million (85 cents/share) compared to the same period in 2003.
Questar Posts 32% Increase in 2004 Net Income, Boosts Production 12%
Strong growth in its exploration and production business and midstream operations led to a 32% increase in Questar Corp.’s net income in 2004 to $229.3 million, ($2.67/share). The company posted a 12% increase in natural gas and oil-equivalent production and realized a 15% increase in natural gas prices. Performance for the fourth quarter also was impressive with a 23% increase in net income to $73.7 million (85 cents/share) compared to the same period in 2003.
Industry Briefs
Southern Union said it will change from a June 30 fiscal year end to a Dec. 31 calendar year end because of its new more midstream business profile. “Our decision to change to a calendar year end reflects Southern Union’s new business profile — weighted heavily toward the natural gas transportation sector,” said Southern Union President Thomas F. Karam. “We feel that this move will also provide the investment community more comparative information with which to better evaluate Southern Union against its peers.” The change in the company’s reporting period will create a six-month stub period from July 1 through Dec. 31, 2004. A transition report on Form 10-K, including audited financial statements for the six-month stub period, will be filed with the Securities and Exchange Commission on or before March 16, 2005. Southern Union previously announced calendar year 2004 and 2005 earnings guidance of $1.00 to $1.10 per share and $1.45 to $1.55 per share, respectively.
Industry Briefs
Dynegy Inc. has completed the sale of its Sherman, TX-based gas processing facility to Dornick Hills Midstream Ltd., which is based in Dallas. The transaction resulted in a pre-tax gain for Dynegy of $17 million. The Sherman plant has a processing capacity of 24 MMcf/d, and “represents one of our last significant divestitures of non-core assets,” said CEO Bruce Williamson. “Consistent with our self-restructuring approach and goal of delivering value to investors, this sale was based on a decision to focus on regions and segments of our natural gas liquids business where we have a larger physical presence and greater opportunities for growth,” he said. Dynegy expects to gain $240 million from non-core asset sales this year, said Williamson. The sales have improved the company’s financial profile and reduced Dynegy’s debt, helping it maintain “a strong level of liquidity to support our ongoing natural gas liquids and power generation businesses.”
Dynegy Sells Texas Gas Processing Facility for $17M
Dynegy Inc. on Tuesday completed the sale of its Sherman, TX-based gas processing facility to Dornick Hills Midstream Ltd., which is based in Dallas. The transaction resulted in a pre-tax gain for Dynegy of $17 million.
Dynegy Sells Texas Gas Processing Facility for $17M
Dynegy Inc. on Tuesday completed the sale of its Sherman, TX-based gas processing facility to Dornick Hills Midstream Ltd., which is based in Dallas. The transaction resulted in a pre-tax gain for Dynegy of $17 million.
Unocal Test Well to Determine Possible New Gas Storage Facility in Colorado
Following up on a request to FERC in June, Unocal Midstream & Trade (UMT) is assessing the feasibility of developing the first-ever bedded salt natural gas storage facility in Morgan County, CO. Unocal Windy Hill Gas Storage LLC asked the Commission for permission to conduct subsurface testing four months ago (see NGI, July 5).
Unocal Holding Open Season for Proposed Sabine Pass Terminal
Unocal Midstream & Trade (UMT) is holding a non-binding open season through Oct. 27 for 6 Bcf of natural gas storage capacity at its proposed Sabine Pass Gas Storage facility. Construction on the new facility, which will be located within Unocal Corp.’s terminal operations near Beaumont, TX, is scheduled to start in 2006, with operations underway by late 2008.
