Poised

FERC is scheduled this week to rule on recommendations recently forwarded to the Commission by Chief Administrative Law Judge Curtis L. Wagner after two weeks of settlement talks related to California’s bid to collect $8.9 billion in refunds failed to produce a final deal between the state and generators.

Houston-based energy marketer Dynegy Inc. is joining an impressive list of companies poised to build U.S.-based liquefied natural gas (LNG) facilities, announcing Thursday it will construct a plant at its existing liquefied petroleum gas terminal site in Hackberry, LA. Because the Gulf Coast site is already developed, the facility could be operational two to three years sooner than a greenfield project, with the first phase of commercial operation set for the end of 2003.

Houston-based energy marketer Dynegy Inc. is joining an impressive list of companies poised to build U.S.-based liquefied natural gas (LNG) facilities, announcing Thursday it will construct a plant at its existing liquefied petroleum gas terminal site in Hackberry, LA. Because the Gulf Coast site is already developed, the facility could be operational two to three years sooner than a greenfield project, with the first phase of commercial operation set for the end of 2003.

Talisman Energy Inc. is poised to become the dominant player in the growing core area of gas-rich Alberta after it set up a friendly agreement last week to purchase cross-town Calgary neighbor Petromet Resources Ltd. for C$806 million in cash and assumed debt. If the deal closes as expected, Talisman would add 72 MMcfe/d to its production base this year and 144 MMcfe/d in 2002.

Talisman Energy Inc. is poised to become the dominant player in the growing core area of gas-rich Alberta after it set up a friendly agreement this week to purchase cross-town Calgary neighbor Petromet Resources Ltd. for C$806 million in cash and assumed debt. If the deal closes as expected, Talisman would add 72 MMcfe/d to its production base this year and 144 MMcfe/d in 2002.

With or without deregulation, the impact of rising energy costswill increase the demand for Enron’s growing product base,especially in its services area, offering even more leverage forNorth America’s largest wholesale marketer. Lou Pai, CEO of EnronEnergy Services LLC, provided an overview of his division at theannual investor’s conference last Thursday in Houston, calling theopportunities for growth are tremendous.

In a deal that creates a formidable independent in the Gulf ofMexico basin, Stone Energy Corp. will purchase Basin ExplorationInc. in a tax-free, stock-for-stock merger worth $410 million,including the assumption of $48 million in debt. Stone, whichoperates exclusively in the Gulf, will pick up Basin’s sizable 3Dseismic knowledge base in the Gulf and add proven Rocky Mountainassets.

In a deal that creates a formidable independent in the Gulf ofMexico basin, Stone Energy Corp. will purchase Basin ExplorationInc. in a tax-free, stock-for-stock merger worth $410 million,including the assumption of $48 million in debt. Stone, whichoperates exclusively in the Gulf, will pick up Basin’s sizable 3Dseismic knowledge base in the Gulf and add proven Rocky Mountainassets.

After operating more than half a century as an integratedbusiness, Southwestern Energy Co. has poised itself to become apure exploration and production company, a strategic move that willfocus the company’s assets on its drilling program in the Arkomaand Permian Basins and onshore Gulf Coast.