In a move rumored for the past few months, Occidental Petroleum(Oxy) took Altura Energy off the hands of Shell Exploration &Production Co. and BP Amoco last week. The $3.6 billion transactionis expected to close within the next few weeks, the companies said.
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Oxy Makes Good on Altura Purchase Rumors
In a move rumored for the past few months, Occidental Petroleum(Oxy) took Altura Energy off the hands of Shell Exploration &Production Co. and BP Amoco yesterday. The $3.6 billion transactionis expected to close within the next few weeks, the companies said.
Industry Briefs
Northeast Utilities and Yankee Gas parent Yankee Energy System,Inc. have completed their merger nine months after the deal wasannounced. The Securities and Exchange Commission, which hadordered the break up of the two companies a decade earlier approvedthe recombination Jan. 31 based on a much more lax application ofthe Public Utility Holding Company Act. After approving the deallast fall, YES shareholders decided whether to receive $45/share incash or in NU stock. NU will issue over 11 million shares to YESshareholders. In addition, YES shareholders who receive NU shares,as opposed to cash, will be eligible to receive NU’s dividend of 10cents per share, payable on March 31 to NU shareholders of recordas of March 6. In the transaction, NU will pay $478 million for allof YES common equity and will assume about $200 million in debt.The Connecticut Department of Public Utility Control issued itsfinal approval Dec. 29. The companies have identified potentialsavings of at least $10 million over the next five years. NortheastUtilities is New England’s biggest electric utility and Yankee Gasis Connecticut’s biggest gas distribution company.
LG&E to Cut 250 Jobs, Streamline Merged Utility Divisions
LG&E Energy said it plans to reduce its 5,500-employeeworkforce by 250 positions (5%) over the next few months in aneffort to streamline and further integrate its two utilityoperations, Louisville Gas and Electric and Kentucky Utilities.Enhanced early retirement and severance programs will be offered tocompany employees to achieve the reduction. The company hopes toachieve these reductions through voluntary means and will useinvoluntary separation only as a last resort.
LG&E to Cut 250 Jobs, Streamline Merged Utility Divisions
LG&E Energy said yesterday it plans to reduce its5,500-employee workforce by 250 positions (5%) over the next fewmonths in an effort to streamline and further integrate its twoutility operations, Louisville Gas and Electric and KentuckyUtilities. Enhanced early retirement and severance programs will beoffered to company employees to achieve the reduction. The companyhopes to achieve these reductions through voluntary means and willuse involuntary separation only as a last resort.
FERC Debuts Mega Gas Rule to Mixed Reviews
After 18 months in the making, the much-anticipated mega-rule,initiating a host of post-Order 636 gas transportation and ratereforms made its public debut last week. The rule got good reviewsfrom pipeline customers but immediate criticism from a majorinterstate pipeline.
FERC Debuts Mega Natural Gas Rule
After 18 months in the making, FERC yesterday unveiled itsmuch-anticipated mega-rule that tackles a full plate of post-Order636 reforms designed to promote greater efficiency and fairness inan ever-changing natural gas market.
New CPUC Commissioner Wants Out
With barely six months under his belt in a six-year appointment,one of California Gov. Gray Davis’ two new state regulatorycommissioners, Joel Hyatt, announced this week that he will resignin January to be replaced by a current top-level Davis cabinetmember, Loretta Lynch, 37, an attorney who heads Davis’planning/research office in Sacramento.
Cash Weakness Drags November Futures 8 Cents Lower
Nymex front months continued to lose strength yesterday withNovember opening sharply lower and slipping downhill fast duringlight morning trading. There was significant selling early asNovember dropped into the low $2.70s before 11 a.m. then choppedsideways the rest of the day, before ending at $2.744, less than 2cents off its daily low of $2.725 and down 8 cents for the day.
Medicine Bow Expansion Brings WIC Back to FERC
Less than two months after FERC approved its Medicine BowLateral, Wyoming Interstate Co. Ltd. (WIC) last week was back atthe Commission seeking a second-phase expansion of the line to add120 MDth/d of capacity. WIC also is laying the groundwork for athird expansion to further meet its contractual commitments withproducers tapping into the prolific coal-bed methane (CBM) reservesin the Power River Basin in Wyoming.