Reducing

Magnum Hunter Resources Inc. has repurchased $10.5 million principal amount of its 10% senior notes due in 2007 in a private transaction, reducing the principal on the notes to $129.5 million from $140 million. The Irving, TX-based company funded the repurchase with its existing commercial bank line of credit, increased by $12.5 million to $125 million recently. With the repurchase, Magnum Hunter said it expected to achieve interest savings of about $500,000 over the next 12 months. Management had pledged to continue its focus to reduce debt and improve the balance sheet, said CEO Gary C. Evans. He said since the beginning of 2000, Magnum Hunter had improved debt-to-equity to 63% from 82%.

Tampa-based Peoples Gas is sending a gift of sorts to its customers beginning today by reducing natural gas prices for the second time this year. The Purchased Gas Adjustment (PGA) factor on residential bills will drop about 32% to $0.66749/therm, following a 15% decrease in March. The two reductions lowered the PGA factor to September 2000 levels, said the company.

FERC yesterday announced a series of actions aimed at boostingenergy supply, reducing demand and eliminating the deliveryconstraints that continue to plague the wholesale electricity andnatural gas markets in California and other western states.

Due to scheduled maintenance, one compressor unit will beunavailable at Koch Gateway’s Koran (LA) Station for 30 daysstarting Oct. 2, reducing station capacity by 22 MMcf/d. Worklasting about 30 days began Tuesday on a unit at the Montpelier(LA) Station, cutting capacity on the 30-inch Kosciusko Line fromMontpelier by 50 MMcf/d.

ÿTranswestern will perform maintenance today on units atStations 1, 2 and 3, reducing West of Thoreau capacity by about100,000 MMBtu/d.

Reducing paperwork and maybe even saving money in the federalgovernment? How can this not be a good thing?

NOVA will be reducing its system linepack target this week from395 e6m3 (about 13.956 Bcf) to 390 e6m3 (13.781 Bcf) in preparationfor upcoming summer operations. The reductions will be made in evenincrements today through Friday. The change is due to increasingambient and ground temperatures, NOVA said. It included in thedetermination of linepack an adjustment to account for changes inthe system’s average heating value. NOVA will not be sellinglinepack to reach its desired target.

NGPL will perform annual maintenance Tuesday through Friday on aunit at Compressor Station 167 (Lea County, NM), reducing areacapacity by about 21,000 MMBtu/d. Depending on nomination levels,only a limited amount of ITS/AOR service may be scheduled for gasreceived in the Permian Zone’s Segments 7, 8 or 9 and deliveredoutside the Permian Zone. The pipeline has scheduled a constructionshutdown of its Old Ocean Lateral for April 27-29. Eight points inBrazoria County, TX, and one in Matagorda County, TX, must takenominations to zero during the outage.

“Owners of small businesses, intent on reducing their operatingcosts, are receptive to the idea of buying their energy supplies atreduced group rates through local or regional businessassociations,” according to a new study by RKS Research andConsulting. The North Salem, NY firm said a small businesssub-group, home-based businesses, would consider discountwarehouses and membership clubs for low-priced electricity offers.RKS also found a market emerging around the idea of bundledservices, including energy, local and long distance telephoneservice and Internet access all on one bill. While the small usersare interested in cutting costs, they can’t do without service.”Across the board, business owners say they seek long-termrelationships with suppliers who stress simplicity and ease ofuse…..They are willing to trade off price for service, qualitybrand name and convenience.”