Sells

As part of an announced program to reduce debt, Devon Energy Corp. has agreed to sell properties in the United States and Canada for $953 million to undisclosed buyers. The assets had aggregate estimated proved reserves of 126.7 MMboe at the end of 2001. Devon’s sales include previously disclosed dispositions involving 43.0 MMboe of proved reserves for $366 million. After an acquisition binge, Devon announced in late December it would sell up to $1.5 billion in properties in North America and overseas to reduce its debt by mid-2002 (see NGI, Jan. 7).

El Paso Corp said it closed on oil and gas property sales totaling $525 million in the first quarter of 2002, and is on track to reach $2.25 billion in assets sales by this summer as part of its balance sheet strengthening program.

Dynegy said it sold 25 million shares of Class A common stock at $20.75 per share in an underwritten public offering related to the capital restructuring program announced on Monday (see Daily GPI, Dec. 18). Net proceeds from the sale totaled $494 million and will be used to reduce debt. Lehman Brothers acted as sole underwriter and retains a 10% over-allotment option for 30 days.

In preparation for its US$8.5 billion merger with Duke Energy (see NGI, Sept. 24), Westcoast Energy Inc. last week began to divest of some assets, including an agreement to sell its Centra Gas units to BC Gas Inc. for C$208 million and another deal worth C$176.7 million, which sends its Ontario-based Union Energy and Westcoast Capital energy services companies to the City of Edmonton’s Epcor Utilities Inc.

In preparation of its US$8.5 billion merger with Duke Energy (see Daily GPI, Sept. 21), Westcoast Energy Inc. announced two divestitures, including an agreement to sell its Centra Gas units to BC Gas Inc. for C$208 million and another deal worth C$176.7 million, which sends its Ontario-based Union Energy and Westcoast Capital energy services companies to the City of Edmonton’s Epcor Utilities Inc.

In keeping with its plan to merge with National Grid USA and focus on regulated energy transmission and distribution businesses, Niagara Mohawk Holdings Inc. on Tuesday sold its unregulated energy marketing and services subsidiary to Select Energy Inc., a subsidiary of Northeast Utilities. Terms of the sale of Niagara Mohawk Energy Marketing Inc., were not disclosed.

Following through on a cost-cutting initiative begun in 1999 under another CEO, Calgary-based TransCanada PipeLines Ltd. on Friday said it has reached an agreement to sell some of its natural gas marketing and trading operations to BP Gas & Power. Included in the sale is CanStates Gas Marketing, a contract to manage gas supply assets for SEMCO Energy Gas Co., and the marketing and trading operations in its Omaha, NE office. Financial details were not disclosed.

Following through on a cost-cutting initiative begun in 1999 under another CEO, Calgary-based TransCanada PipeLines Ltd. on Friday said it has reached an agreement to sell some of its natural gas marketing and trading operations to BP Gas & Power. Included in the sale is CanStates Gas Marketing, a contract to manage gas supply assets for SEMCO Energy Gas Co., and the marketing and trading operations in its Omaha, NE office. Financial details were not disclosed.

Yankee Energy System, part of the Northeast Utilities system, has completed the divestiture of several non-regulated energy development businesses.