Previously

El Paso Energy Partners LP completed its previously announced acquisitions of the Chaco processing facility and Deepwater Holdings LLC from El Paso Corp. Chaco is a cryogenic natural gas processing facility located in northern New Mexico’s San Juan Basin and is connected to El Paso Field Services’ extensive natural gas gathering system. It is the third-largest natural gas processing plant in the United States with processing capacity of 700,000 Dth/d and natural gas liquids (NGL) production capacity of 50,000 b/d. EPN retains an existing lease with El Paso Field Services. In conjunction with the Chaco acquisition, EPN entered into a 20-year, fixed-rate tolling agreement to process natural gas for El Paso Field Services. The Chaco transactions are valued at $198.5 million. Deepwater Holdings owns the High Island Offshore System, which serves the Outer Continental Shelf region of the western Gulf of Mexico and the East Breaks Gathering System, which serves the deepwater trend of the western Gulf of Mexico region. Prior to the acquisition, EPN operated and held a 50% interest in Deepwater Holdings. EPN acquired the remaining 50% interest from a subsidiary of El Paso Corp. and retired project debt for a total transaction value of $85 million.

Chevron Corp. and proposed merger partner Texaco Inc. on Friday scheduled special shareholder meetings for Oct. 9 to vote on their previously announced merger (see Daily GPI, Oct. 17, 2000). The date of the meetings, as well as other merger-related information — including a new New York Stock Exchange ticker symbol, CVX — were contained in a filing by Chevron made Friday with the U.S. Securities and Exchange Commission. The new company would be called ChevronTexaco.

Hanover Compressor completed its previously announced acquisition from Schlumberger Ltd. of the Production Operators Corp. natural gas compression business as well as ownership interests in certain joint venture projects in South America and related assets for $761 million. Schlumberger received $270 million in cash, $150 million in long-term subordinated notes and 8.7 million shares of newly issued restricted Hanover common stock having a nominal value of $283 million. It also is entitled to receive a distribution of up to $58 million upon the occurrence of certain events relating to one of the joint ventures acquired by Hanover in the transaction. Hanover management reconfirmed its belief that the transaction will add annual revenue and EBITDA of at least $200 million and $90 million, respectively, within one year. As a part of a five-year alliance, Schlumberger has agreed to hold its ownership stake in Hanover for at least three years. In addition, Hanover has agreed to add a senior executive of Schlumberger to its board of directors. The initial designee is Rene Huck, president of reservoir evaluation and development for Schlumberger Oilfield Services. The transaction considerably enhances Hanover’s position in the global compression services and gas handling industry, significantly extends its reach and anticipated growth in large, newly opened markets overseas, and adds 900,000 hp to its compression fleet and an additional 800,000 hp through the South American joint ventures. “We believe this accretive multi-faceted transaction will generate strong revenue growth for Hanover over the next five years,” said Hanover CEO Michael J. McGhan.

El Paso said a compressor maintenance outage of its Leupp Station, previously scheduled for yesterday, has been postponed until further notice.

Due to the uncertainty posed by Tropical Storm Barry, Tennessee has delayed the start of a 500 Line outage until Tuesday. The work previously was set to begin today (see Daily GPI, Aug. 3).

Tennessee delayed the start of a maintenance outage on its 500 Line, previously set for today (see Daily GPI, July 27), until Monday. Tennessee anticipates restricting and sealing 40-65% of Secondary services through the end of the month at meters upstream of Station 530, and will not accept any nominations at the Lake Borgne meter Aug. 11-23.

Aquila Inc. is maintaining its previously set 25% growth target for the year despite the downturn in energy stocks and the continuing regulatory and legislative tirade against western power generators and marketers. By remaining geographically diverse across the United States, Aquila executives said they effectively eliminate concentration risk.

Aquila Inc. is maintaining its previously set 25% growth target for the year despite the downturn in energy stocks and the continuing regulatory and legislative tirade against western power generators and marketers. By remaining geographically diverse across the United States, Aquila executives said they effectively eliminate concentration risk.

Lakehead Pipe Line Co. Inc. appointed Dan C. Tutcher to the position of president of the company effective June 5, 2001. Tutcher was previously the chairman, president and CEO of Midcoast Energy Resources Inc. from its formation in 1992 until it was acquired on May 11, 2001, by Enbridge Inc. At that time, Tutcher was appointed group vice president, transportation group south, by Enbridge. Lakehead Pipe Line is the General Partner of Lakehead Pipe Line Partners, L.P. and is indirectly wholly owned by Enbridge. “The Houston-based business development team brought over from Midcoast has an established track record of profitable growth, which we expect to continue on behalf of Lakehead,” said Tutcher. “In particular, our knowledge of emerging Mid-continent and Gulf Coast transportation requirements and excellent relationships within the energy industry will allow us to execute our strategy.”