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).
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Transportation Notes
El Paso declared an Unauthorized Overpull Penalty situation Sunday and kept it in place through Monday.
Industry Briefs
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.
Union Gas Offers, Peak Storage, Interruptible Deliveries
Union Gas Ltd. is offering between 1-2 Bcf of peak storage capacity at its Dawn market hub for injection this summer and withdrawals during the coming winter season.
Reliant Resources IPO Makes Debut This Week
Another initial public offering will make a splash in the market this week, and this one may have as much steam as Aquila Energy’s, launched last week (see Daily GPI, April 25). Reliant Resources Inc., the unregulated business unit of Houston-based Reliant Energy Inc. on Friday raised its estimated price range for its IPO by $2, putting the stock price in the $28-30 per share range.
Texas Refund Bill Faces Tight Deadline
A bill that could force Texas electric utilities to start offering significant refunds to customers early next year passed a key Texas House panel last week, but now faces a series of hurdles that it must clear before the current session of the Texas Legislature expires at the end of next month. That’s a tight deadline, but one that could be met, a spokesperson for Texas-based TXU Electric told NGI last week.
Independents Vintage, Genesis Agree to Merge
Independent Vintage Petroleum Inc., based in Tulsa, has entered into an agreement to acquire Canadian-based Genesis Exploration Ltd., offering C$18.25 per share in cash. The boards of both companies have unanimously agreed to the offer, which puts total consideration, including assumption of Genesis’ estimated debt, at C$898 million (US$572 million).
Independents Vintage, Genesis Agree to Merge
Independent Vintage Petroleum Inc., based in Tulsa, has enteredinto an agreement to acquire Canadian-based Genesis ExplorationLtd., offering C$18.25 per share in cash. The boards of bothcompanies have unanimously agreed to the offer, which puts totalconsideration, including assumption of Genesis’ estimated debt, atC$898 million (US$572 million).
NW Natural Awaits FERC OK of Storage Plans
Northwest Natural has called on FERC to act swiftly on itsapplication so it can begin offering storage and transportationrelated services to the interstate market for the first time, amove that could help to relieve some of the constraints in thewestern natural gas and electricity markets.
CMS Schedules IPO for Oil & Gas Unit
CMS Energy Corp. announced last Wednesday it has filed for aninitial public offering (IPO) in the first quarter next year for upto 49% of the stock in its exploration and production subsidiary,CMS Oil and Gas Co. The sale, in which CMS hopes to realize $400million, is part of a “value enhancement” program announced lastmonth aimed at strengthening its balance sheet.