Program

Dallas-based Atmos Energy Corp., which has made steady acquisitions for the past 18 years, made its biggest buy ever last week, announcing it will buy substantially all of the operations of TXU Gas Co., a subsidiary of TXU Corp., in an all-cash transaction valued at $1.925 billion. The deal will make Atmos the largest pure-play natural gas distribution business in the United States.

ChevronTexaco Corp. has approved a program to repurchase up to $5 billion of the company’s common stock. The repurchases were to begin Thursday and continue for up to three years.

Duke Energy continued a major divesture program last week, selling about $138 million in surplus power generation and power plant equipment to two separate counterparties and unloading US$1.238 billion (A$1.69 billion) in pipeline and power plant assets in Australia and New Zealand to Australian combination utility company Alinta Ltd.

A bonus and incentive plan used by Royal Dutch/Shell Group is being examined by the Securities and Exchange Commission (SEC) to determine whether it encouraged upper level management to overstate oil and gas reserves, according to a report in the Wall Street Journal.

Fort Worth-based Quicksilver Resources Inc. moved forward with its Canadian coalbed methane (CBM) program in 2003, ending the year averaging 5.7 MMcf/d, with year-end production from its CBM wells at 16 MMcf/d. For all of its projects, full-year gas production totaled 34.5 Bcf, while production in the fourth quarter was 9.3 Bcf, up from 8.6 Bcf in 4Q2002. Natural gas, including natural gas liquids, comprised 89% of the company’s total production in the fourth quarter of 2003. Through its Canadian subsidiary, MGV Energy Inc., an $89 million capital budget for development and exploration is planned in 2004. Most of this budget will target CBM development while continuing exploration and piloting efforts in new areas. MGV presently holds leases and drilling rights on more than 525,000 net acres in Canada. Fourth quarter net income was $5.8 million on revenues of $36.8 million, or $0.23/share, compared with 4Q2002 net income of $4.3 million ($0.21/share) on revenues of $31.8 million. Net cash from operating activities for the fourth quarter of 2003 was $21.4 million versus $20.2 million for the fourth quarter of 2002.

In a favorable step for the state’s suspended electric direct access purchasing program, California’s Supreme Court last Thursday upheld the state regulatory commission’s authority and recent rules laid down for customers who were exempted from the state legislature’s restrictions imposed two years ago. About 15% of the three private sector electric utilities’ load is covered by large customers buying their own power supplies.

Updating the progress on its ongoing asset sales program, Tulsa-based Williams reported Friday that it has closed three previously announced transactions involving sales of assets and a power contract for approximately $663 million in aggregate consideration.

Updating the progress on its ongoing asset sales program, Tulsa-based Williams reported Friday that it has closed three previously announced transactions involving sales of assets and a power contract for approximately $663 million in aggregate consideration.

Answering the call for increased domestic natural gas production, Magnum Hunter Resources Inc. said new production has commenced from its West Cameron Block 426 located on the Outer Continental Shelf (OCS) of the Gulf of Mexico. In addition, the Irving, TX-based company said it anticipates the start of new production from West Cameron Block 416 later this week, Ship Shoal 28 next month and West Cameron Block 428 within ten weeks.