Paid

Futures traders essentially ignored the formation of Tropical Storm Alex, and the cash market also paid it little heed as prices were little changed from flat Monday. Lower numbers constituted a slight majority, especially in the Midcontinent, Rockies and Western Canada.

Pioneering shale gas producers and those following in their footsteps have come a long way in the technology and know-how department. Their growing wisdom has paid off in setting the country on a course for a new peak in gas production, according to Bentek Energy LLC CEO Porter Bennett.

Pioneering shale gas producers and those following in their footsteps have come a long way in the technology and know-how department. Their growing wisdom has paid off in setting the country on a course for a new peak in gas production, according to Bentek Energy LLC CEO Porter Bennett.

Shale gas development is poised to spread into Alberta on a large scale after producers paid C$365 million (US$343 million) for a new target zone north of the provincial capital of Edmonton.

Shale gas development is poised to spread into Alberta on a large scale after producers paid C$365 million (US$343 million) for a new target zone north of the provincial capital of Edmonton.

While pre-paid, long-term natural gas purchases by consortiums of public-sector utilities are still attracting attention, at least one major muni financing arm, the Southern California Public Power Authority (SCPPA), has moved away from prepaid gas. Instead, SCPPA is adding natural gas reserves and carrying out almost a perpetual bidding program for new renewable projects.

Rapid City, SD-based Black Hills Corp. said it has paid off the remaining $105 million of borrowings used to acquire five utilities (four natural gas and one electric) from Aquila last year. It was part of a $383 million bridge acquisition facility loan originally obtained to acquire the Colorado electric and gas utilities and three other gas utilities in Iowa, Kansas and Nebraska in a deal that closed July 14, 2008. Last December Black Hills extended the bridge facility to a Dec. 29 maturity date this year from one that originally was set for last Feb. 5. This allowed the utility holding company more time to line up long-term debt financing. In April Black Hills used $30.2 million from the sale of a 25% ownership interest in its Wygen III power plant to pay down a portion of the facility, and then in May the company completed a $250 million public long-term bond offering, the proceeds of which were used to pay off the final $105 million. Black Hills now has about $300 million of liquidity to support its businesses and it plans “to obtain additional long-term debt financing by year-end to support our growth initiatives,” said CEO David Emery.

Nexen Inc.’s decision to scale down its marketing division paid off in 1Q2009, but the Calgary-based producer still saw earnings tumble 79% compared with the same period last year.

Nexen Inc.’s decision to scale down its marketing division paid off in 1Q2009, but the Calgary-based producer still saw earnings tumble 79% compared with the same period last year.