Revealed

Southern California Gas Co. revealed plans last week to expand several receipt points by 150 MMcf/d despite its own claims that inadequate takeaway capacity at the Southern California border had nothing to do with the record spot price increases there this winter.

Responding to tight energy supplies in the Pacific Northwest and California, PG&E Corp.’s National Energy Group revealed plans last week to begin an open season early next year, kicking off a five-year expansion effort. The first phase would add 200 MMcf/d of firm transportation capacity out of western Canada on its Gas Transmission-Northwest (GTN) pipeline system. The PG&E GTN group expects the phase one expansion to be in service by November 2002 at the latest.

Responding to tight energy supplies in the Pacific Northwest andCalifornia, PG&E Corp.’s National Energy Group revealed plansWednesday to begin an open season early next year, kicking off afive-year expansion effort. The first phase would add 200 MMcf/d offirm transportation capacity out of western Canada on its GasTransmission-Northwest (GTN) pipeline system. The PG&E GTNgroup expects the phase one expansion to be in service by November2002 at the latest.

McMoRan Exploration has announced its Vermillion Block 196 #2exploratory well has revealed 70 feet of net oil and gas pay inthree sands between depths of 13,160 and 14,350 feet.

BP Amoco, the last of the big three majors in the oil and gasindustry to report second quarter earnings, yesterday revealed thatlike those that have already made their earnings public, theLondon-based giant had record results, posting a 164% increase tothe bottom line.

Southwestern Energy has revealed that it will be forced to selloff some unidentified assets to cover the costs associated with aruling last week by the Arkansas Supreme Court. The court affirmeda 1998 decision of a Sebastian County Circuit Court awarding morethan $109 million in a class action to royalty owners of SEECO,Inc., a wholly-owned Southwestern Energy subsidiary.

Southwestern Energy has revealed that it will be forced to selloff some unidentified assets to cover the costs associated with aruling yesterday by the Arkansas Supreme Court. The court affirmeda 1998 decision of a Sebastian County Circuit Court awarding morethan $109 million in a class action to royalty owners of SEECO,Inc., a wholly-owned Southwestern Energy subsidiary.

Equitable Resources said its aggressive M&A strategy isbeginning to pay off, as the company revealed a 40% jump in firstquarter 2000 earnings to $39.1 million compared to the same periodlast year. The earnings were higher than Wall Street estimates andmay trigger purchase offers for the company, according to someanalysts.

Plans for a new publicly-traded energy giant were revealed last week, as Duke Energy and Phillips Petroleum announced their intentions to form a midstream company called Duke Energy Field Services (DEFS). Expected to have an enterprise value of between $5 and $6 billion, DEFS will result from a merger of Duke’s gathering and processing businesses (also called Duke Energy Field Services) with Phillips’ Gas Processing and Marketing (GPM) unit. Subject to approval by the FTC under the Hart-Scott-Rodino act, the deal is expected to close by the first quarter 2000.