Picks

Having recently snapped up Mid-American Pipeline and Seminole Pipeline from Williams, Enterprise Products Partners L.P. announced it was continuing to solidify its natural gas liquids empire with the purchase effective Nov. 1 of four NGL terminals and certain wholesale propane supply and sales contracts from an affiliate of Cornerstone Propane Partners, L.P.

Having recently snapped up Mid-American Pipeline and Seminole Pipeline from Williams, Enterprise Products Partners L.P. announced it was continuing to solidify its natural gas liquids empire with the purchase effective Nov. 1 of four NGL terminals and certain wholesale propane supply and sales contracts from an affiliate of Cornerstone Propane Partners, L.P.

Dynegy Inc. punted away two assets last week and in return, received some cash to put toward its sagging liquidity. Last Monday, it sold one of its two natural gas storage facilities in the United Kingdom, and on Wednesday, sold the last asset it held in Northern Natural Gas Co. (NNG). Together, the two sales added close to $300 million to the coffers.

Dynegy Inc. got rid of the last asset it held in Northern Natural Gas Co., announcing Wednesday it had sold $90 million in 6.875% senior notes due May 2005 for $96 million in cash.

Houston-based Marathon Oil Co., a wholly owned subsidiary of Marathon Oil Corp., said last week it acquired the rights of bankrupt Enron Corp. to deliver and sell liquefied natural gas (LNG) at the El Paso Corp.-owned Elba Island terminal facilities near Savannah, GA. The U.S. Bankruptcy Court for the Southern District of New York approved the transfer of ownership to Marathon, which was the successful bidder for the rights at $31.9 million.

Unocal Corp. announced plans to pick up the remaining 35% of Pure Resources Inc. which it does not already own, offering 0.6527 shares of Unocal common stock for each outstanding share of Pure’s common stock. The transaction is valued at about $400 million based on Unocal’s current share price.

Houston-based Marathon Oil Co., a wholly owned subsidiary of Marathon Oil Corp., said Tuesday it has acquired the rights of bankrupt Enron Corp. to deliver and sell liquefied natural gas (LNG) at the El Paso Corp.-owned Elba Island terminal facilities near Savannah, GA. The U.S. Bankruptcy Court for the Southern District of New York last week approved the transfer of ownership to Marathon, which was the successful bidder for the rights at $31.9 million.

With optimism spreading that natural gas prices will stay firm, drilling is on the rise in western Canada, as producers set out to make supplies catch up to expanded export pipeline capacity. A barometer of field activity — periodic forecasts by a group in close touch, the Petroleum Services Association of Canada (PSAC) — has risen 5% as producers telegraph intentions for the forthcoming fall and winter drilling season with orders and contracts.

Salomon Smith Barney (SSB) said Wednesday it would change the structure of its stock research department to match the changes agreed to this week by Merrill Lynch & Co. in a $100 million settlement with the State of New York (see Daily GPI, May 23). In a memorandum to the SSB staff, CEO Michael A. Carpenter said a research review committee would be formed to oversee analysts’ recommendations, and said SSB would separate “the evaluation and compensation of equity research analysts from investment banking.”