Million

A combination of Dominion Resources and CNG would form thenation’s fourth largest electric and gas utility, serving nearly 4million retail customers in five states. Market capitalization ofthe combined entity will exceed $25 billion-consisting of about$14.5 billion in equity, $9.5 billion in debt and minorityinterests, and $1.1 billion in preferred stock.

Evergreen Resources, Inc. announced Thursday the acquisition of41,000 gross Raton Basin acres from Infinity Inc. affiliate, CISOil and Gas, for $8.5 million. Evergreen estimates this additionwill increase its coal-bed methane proved net gas reserves by 22.5Bcf. The company now holds working majority interest in 200,000acres in the basin. The effective date of the transaction was Dec.31, 1998.

Duke Energy Trading and Marketing (DETM) added 1 Bcf/d of gassales and 14.07 million MWh of power sales to its marketingoperation with the purchase of NP Energy, which was at No. 20 inNGI’s power marketer ranking by volume in the third quarter. Themove pushes Duke up to No. 3 from No. 5 in gas marketing and to No.4 from the No. 7 spot in power based on third quarter volumes.

In a move similar to those of its peers, Chevron Corp. announcedit would cut expenses by $500 million next year, including someunspecified staff reductions, and spend about $5.1 billion, 8% lessthan was spent in 1998. Cuts in 1999 capital spending will beaccomplished primarily in the company’s mature North AmericanE&ampP business, as well as in refining and marketing and inchemicals.

Cabot Oil &Gas Corp. plans to acquire the onshore South Louisiana properties of Oryx Energy Co. for about $72 million. Under the terms of the agreement, Houston-based Cabot will purchase 10 fields (six operated, four non-operated) covering 34,345 net acres with 68 producing wells. The acquired producing assets are concentrated in three primary fields that each provide Cabot with a high working interest. These fields make up 80% of the value assigned to the transaction.

Duke Energy International, LLC (DEI) acquired Broken HillProprietary Company Ltd.’s power business (BHP Power) for $315million. The purchase will establish DEI as an industrial energyfacility operator in the emerging competitive Australianelectricity market.

Vector Pipeline sponsors finally conceded last week their $471million project will not be prepared to ship a proposed 1 Bcf/d ofgas from Chicago to Dawn, ON, in November 1999 as planned. Theproject will be able to ship some gas along a short stretch of pipeat the downstream end between MichCon’s system and the Dawn hub,but about 340 miles of the system will remain out of service untilfall of 2000, sponsors told FERC.

Dynegy opened a new $57 million gas liquids fractionationfacility near Lake Charles, LA, that can separate up to 55,000barrels/d of gas liquids into ethane, propane and a butane andnatural gasoline mix. The facility is fed primarily from offshoreproduction in the Gulf of Mexico via pipeline and truck throughDynegy’s Hackberry terminal. Its products are primarily shippedthrough pipeline to customers in the petrochemical/refiningindustry in Lake Charles.

In an attempt to deter other utilities in the state, Californiaregulators Nov. 5 slapped a $1.68 million fine on Pacific Gas andElectric Co. for allowing an unregulated energy services affiliateto violate newly created state rules earlier this year governingthe use of the parent company name and logo. The PG&ampE utilitycompany expressed disappointment and vowed to appeal the decision,which requires the penalty be paid out of shareholder funds.