Sales

Constellation Energy Group has consolidated three subsidiaries, Alliance Energy Services, Blackhawk Energy Services and Kaztex Energy Management, into the new Constellation NewEnergy-Gas Division, a full-service provider of natural gas supply, transportation and related services to businesses throughout North America. The company said the move would result in operational efficiencies and provide improved brand recognition.

Constellation Energy Group has consolidated three subsidiaries, Alliance Energy Services, Blackhawk Energy Services and Kaztex Energy Management, into the new Constellation NewEnergy-Gas Division, a full-service provider of natural gas supply, transportation and related services to businesses throughout North America. The company said the move would result in operational efficiencies and provide improved brand recognition.

After faltering in earlier sales attempts, Dynegy Inc. last week reached agreement to sell its regulated utility Illinois Power Co. (IP) to St. Louis-based Ameren Corp. for $2.3 billion. Dynegy expects to increase its cash flow to $430-$480 million and to record a $65 million net gain on the sale. The sale of IP also will reduce Dynegy’s projected 2004 losses by $45-$75 million (12-20 cents/share).

After faltering in earlier sales attempts, Dynegy Inc. on Tuesday reached agreement to sell its regulated utility Illinois Power Co. (IP) to St. Louis-based Ameren Corp. for $2.3 billion. Dynegy expects to increase its cash flow to $430-$480 million and to record a $65 million net gain on the sale. The sale of IP also will reduce Dynegy’s projected 2004 losses by $45-$75 million (12-20 cents/share).

Bankrupt Mirant Corp. on Friday said that it has reached a settlement with FERC staff related to the sale of ancillary services in California. Mirant settled for $3.66 million, which the company said is a fraction of the approximately $28 million alleged by the California parties in the original claim made against the company.

Looking to continue its “returns-focused” strategy, ConocoPhillips said that it will set a number of goals for the next year, including a $1 billion increase to the company’s asset divestment target.

Looking to continue its “returns-focused” strategy, ConocoPhillips said Wednesday that it will set a number of goals for the next year, including a $1 billion increase to the company’s asset divestment target.

The utility is obligated under a franchise agreement to pay the city a fee based on its income from gas sales to customers. However, since deregulation those fees have fallen as large customers have migrated to alternative suppliers. The city charged that the utility purposely violated its franchise agreement by allowing large customers to buy gas from other companies (see Daily GPI, July 6, 1998).

Denver-based Tom Brown Inc. scored well earnings-wise in the second quarter, but production-wise, the independent’s natural gas numbers were off about 8% compared with a year ago. Oil and gas production overall this year is forecast to be down from 2002 levels, but recent drilling success in the Rocky Mountains and a new acquisition should result in 14% growth from the first quarter through the end of the year, management said Friday.