The U.S. Bankruptcy Court in San Francisco extended the exclusivity period for PG&E’s plan of reorganization, but allowed regulators until Feb. 13 to provide the court with specific and credible evidence that they can produce a viable alternative. The court also ordered PG&E, the California Public Utilities Commission (CPUC) and the state to provide comments on Jan. 25 about whether a third party should be appointed to meet with them to try and attempt to resolve conflicts relating to PG&E’s plan.
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NiSource Reports 3Q Loss
NiSource Inc. reported net income of $160.7 million, or $0.78 per basic share, for the nine months ended Sept. 30 versus net income of $155 million, or $1.27 per basic share for the same period last year. But the two are not comparable, NiSource said, because of its acquisition Nov. 1, 2000 of Columbia Energy Group.
Devon Reduces Downside Price Risk with New Swaps, Collars
During this period of record volatility in the natural gas market, Devon Energy has made an effort to reduce its downside commodity price risk with several hedging instruments, including costless collars, price swaps and fixed price transactions that cover a substantial amount of its natural gas production. The company became the largest independent natural gas producer in North America last month with its Oct. 15 acquisition of Anderson Exploration. The deal increased its gas production to 2.2 Bcf/d.
Williams Clears Antitrust Hurdle for Barrett
Williams Cos. was granted early termination of the regulatory waiting period under antitrust laws this week, clearing the way for its proposed acquisition of Denver-based Barrett Resources. Under terms of the agreement announced last month (see Daily GPI, May 8), Williams made a cash tender offer to purchase 16 million shares of Barrett stock at $73 a share. The offer expires June 11.
NEB: NGL Impacted by ‘Unprecedented’ Gas Prices
The “unprecedented” high natural gas prices in the three-month period from November 2000 to January 2001 impacted not only natural gas liquids prices, but impacted how liquids were valued, according to a report by the Calgary-based National Energy Board. NEB said that as a result, NGL prices are “expected to continue to be influenced by both oil and gas prices.”
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.
ComEd Asks FERC to Relax Rules for Summer Period
Commonwealth Edison Co. has requested waivers and authorizations from FERC to allow a number of its industrial and commercial customers with on-site generation to sell excess power to the utility during summer peak demand periods without first obtaining Commission approval.
ComEd Asks FERC to Relax Rules for Summer Period
Commonwealth Edison Co. has requested waivers and authorizations from FERC to allow a number of its industrial and commercial customers with on-site generation to sell excess power to the utility during summer peak demand periods without first obtaining Commission approval.
Futures Fumble Lower Amid Technical, Fundamental Weakness
Following a nine-week sideways consolidation period, natural gas prices finally broke lower Monday, as traders continued to price in the impact of increased production in a slowing economy. A gap lower open for the June contract set the tone early and the bears responded with a steady stream of selling throughout the session, delivering the prompt month to its lowest settle in five months. At the closing bell, June was 17.2 cents lower at $4.695.
Nymex to Expand End-of-Week Post-Close Session
In an effort to provide a more expansive period in whichparticipants can adjust their positions on evenings whenafter-hours Access trading is unavailable, the New York MercantileExchange will offer a 10-minute post-close trading session at theend of every week, with the same trading range that occurs duringthe day’s trading session, for its crude oil, heating oil, unleadedgasoline, and natural gas futures contracts.