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Columbia Energy Group has restarted its open market sharerepurchase program, with the concurrence of NiSource Inc. Theprogram had been suspended since October, when Columbia’s boardauthorized the company’s management to explore strategicalternatives to enhance shareholder value. Under the recommencedprogram, originally authorized by Columbia’s board of directors in1999, Columbia may repurchase up to $300 million of common shares.Columbia and NiSource signed a definitive merger agreement on Feb.27. The merger, subject to approval by shareholders and regulatoryagencies, is expected to be completed by the end of 2000. Therepurchase program authorizes Columbia Energy Group to makepurchases in the open market or otherwise.

After exploring its options, Occidental Petroleum Corp. of LosAngeles agreed to sell for C$29.61/share its 29.2% stake inCanadian Occidental Petroleum Ltd. for gross proceeds of C$1.2billion Canadian. Occidental expects after-tax net proceeds to beUS$700 million and to report a gain of US$300 million.

BP Amoco exercised its right of first refusal to buy SouthernNatural Gas Co.’s one-third interest in the Destin Pipeline,growing its share to two-thirds. Tejas Destin LLC holds theremainder.

Commodity prices are up, and the financial performance of anumber of energy companies is on the rise. The question being askedthis week in Houston is why are Wall Streeters treating energycompany stocks like ugly stepchildren?

The birth of a New England power plant will spawn more importsof LNG to the United States. Last week it was announced that SitheEnergies Inc. will feed its 1,600 MW Mystic Station in Everett, MA,with LNG imported by nearby Cabot LNG Corp.

El Paso Energy Corp. completed its acquisition of Crystal GasStorage Inc. of Shreveport, LA. Each holder of Crystal Gas Storagecommon stock received $57 per share in cash in a deal worth $224.6million. “The Crystal assets provide the flexibility, highdeliverability, and multiple pipeline interconnects necessary tomeet the gas supply demands of new plants in the competitive powermarket,” said El Paso CEO William A. Wise.

El Paso Energy Corp. completed its acquisition of Crystal GasStorage Inc. of Shreveport, LA. Each holder of Crystal Gas Storagecommon stock received $57 per share in cash. The deal is worth$224.6 million.

NiSource Inc. has extended its $74/share ($6.1 billion) tenderoffer for all of the outstanding common stock of Columbia Energyuntil midnight EST on Feb. 11. despite seeing little change in thenumber of shares tendered or the reaction of Columbia since itraised its offer in October. It said that so far Columbiashareholders have tendered 49,645,081 shares, or about 61% of allColumbia’s outstanding stock. Columbia’s management has repeatedlyrejected a merger with NiSource, and currently is evaluating alloptions, including a sale of all or part of the company.

Ending a partnership in existence since 1994, Columbia’sliquefied natural gas (LNG) subsidiary, Columbia LNG, bought PepcoEnergy Co.’s 50% interest of the Cove Point LNG facility inMaryland for an undisclosed sum, the companies said last week.Columbia also announced plans to recommission Cove Point’smothballed marine terminal to handle imports for the first time in20 years. The purchase needs Federal Trade Commission approvalunder the Hart-Scott-Rodino Act, and Columbia said it hopes toclose the deal by the end of next month and file forrecommissioning the terminal later next year.