Williams has completed the buy-back of nearly $793 million of its debt, but as a result, it will take a third quarter charge on the transaction. The Tulsa-based energy company has been working to cut long-term debt to less than $8 billion by the end of 2005, and at the end of the second quarter, it had pared it to $9.8 billion. The company paid a premium of $135 million over the face value of the $793 million of its 8.6% senior notes, which are due in 2010. Williams bought back 99% of the notes, it said. The third quarter pre-tax charge will total about $155 million for the premium and related fees and expenses. Williams retained Citigroup Global Markets Inc. to serve as the lead dealer manager and solicitation agent. Banc of America Securities LLC, J.P. Morgan Securities Inc., and Lehman Brothers Inc. served as the co-dealer managers and solicitation agents. Global Bondholder Services Corp. served as the information agent for the tender offer.
Result
Articles from Result
Futures Bounce Off Previous Low Ahead of Storage
After threatening for most of the morning to punch below the $6 mark, August natural gas futures rebounded from near its previous $6.025 low to settle at $6.155, up 3.7 cents on the day.
Canadian Superior’s Stock Tumbles as a Result of Mariner Test Well Suspension
Due to high drilling costs and pack ice delays, Calgary-based Canadian Superior Energy Inc. said that despite encountering gas pay in multiple zones on its Mariner I-85 well, it has temporarily halted drilling on the deepwater prospect because of pack ice and potential cost overruns.
Canadian Superior’s Stock Tumbles as a Result of Mariner Test Well Suspension
Due to high drilling costs and pack ice delays, Calgary-based Canadian Superior Energy Inc. said that despite encountering gas pay in multiple zones on its Mariner I-85 well, it has temporarily halted drilling on the deepwater prospect because of pack ice and potential cost overruns.
Analysts Forecast Modest Gas Production Decline, Lower E&P Earnings in ’04
U.S. natural gas production will continue to decline this year, but a fourth quarter survey of 43 domestic producers suggests a more modest decline compared with last year, according to Southwest Securities analysts.
Raymond James Boosts Stock Targets on E&Ps after Gas Price Surge
As a result of last week’s soaring natural gas prices, continued firm oil prices and stable drilling costs, Raymond James & Associates said it is raising its price targets on 22 exploration and production companies that it has labeled Strong Buy and Outperform.
EIA Reports Large Storage Revision with New Survey Methodology
The net result of the Energy Information Administration (EIA) revising 16 weeks of previously released gas storage data using its new storage methodology last week was a net 93 Bcf increase in working gas levels from what was reported a week earlier. The EIA said storage now stands at 3,121 Bcf, or 82 Bcf more than the five-year average and only 51 Bcf less than last year.
Energy Buyers Urge Domenici to Reconsider Deal Delaying SMD
A group of major energy purchasers formed as a result of last month’s historic blackout urged Sen. Pete Domenici (R-NM) last week to reconsider a deal backed by Sen. Richard Shelby (R-AL) that would delay implementation of FERC’s pending standard market design (SMD) proposal for U.S. wholesale power markets for several years.
Transportation Notes
Columbia Gas said maintenance beginning Monday on its VM-108 line will result in zero non-firm capacity through the internal constraint at Louisa and in Market Area 33.This restriction is tentatively scheduled to last seven to 10 days, Columbia said, but is subject to change for reasons such as third-party-controlled events and decisions, weather, work schedules, equipment availability, force majeure events, etc.
Aquila Affiliate Defaults on Loans Tied to 580 MW Missouri Plant
Aquila Inc. last week said that its near-term liquidity won’t be affected as a result of MEP Pleasant Hill LLC’s defaulting on $270 million of construction loans that were used to fund construction of a 580 MW, gas-fired combined cycle power plant located near Pleasant Hill, MO. Aquila holds a 50% interest in MEP Pleasant Hill.
