Shareholders

Thanks to historically high hydrocarbon prices, exploration and production (E&P) companies in 2006 are once again rewarding shareholders through stock repurchases and dividend increases. However, Standard & Poor’s (S&P) said those large share buybacks have tempered the credit ratings improvement E&Ps likely would have received otherwise.

Exploration and production (E&P) companies can no longer offer their investors only optimistic forecasts of their oil and gas reserves — shareholders want the cold, hard numbers. And when the Securities and Exchange Commission (SEC) requests reserves information, it also wants the cold, hard numbers. Determining those numbers, as close as possible, has translated into a booming business for Texas-based engineering firm Netherland, Sewell & Associates (NSAI).

Exploration and production (E&P) companies can no longer offer their investors only optimistic forecasts of their oil and gas reserves — shareholders want the cold, hard numbers. When the Securities and Exchange Commission (SEC) requests information about reserves, it also wants the cold, hard numbers. Determining those numbers, as close as possible, has translated into a booming business for Texas-based engineering firm Netherland, Sewell & Associates (NSAI).

Anadarko Petroleum Corp. has completed its acquisition of Kerr-McGee Corp. (KMG) and awaits final approval for its acquisition of Western Gas Resources Inc. (WGR) later this month. KMG shareholders voted to adopt the merger agreement and will receive $70.50/share in cash for each share of common stock. Anadarko’s $21.1 billion mega-merger agreement with KMG and WGR was approved by the Federal Trade Commission earlier this week (see Daily GPI, Aug. 9). In connection with the transaction, Anadarko anticipates it will guarantee the outstanding publicly held indebtedness of KMG. In connection with the merger, Charles A. Meloy, KMG’s vice president of exploration and production, will become Anadarko’s senior vice president of Gulf of Mexico and international operations. Luke R. Corbett, formerly chairman and CEO of KMG, has been appointed to Anadarko’s board of directors.

EnCana Corp. shares were down about 4% Tuesday morning following news on Monday that the company recommended that shareholders reject an unsolicited mini-tender offer made by TRC Capital Corp. (TRC Capital) for up to two million shares, or 25% of the outstanding common shares of the company, at an offer price of C$54.50/share.

Vintage Petroleum shareholders Thursday voted in favor of Occidental Petroleum’s $4.4 billion purchase offer, including $550 million in debt assumption and $3.87 billion in OXY shares and cash. The positive vote paves the way for the acquisition to be completed at the end of the month.

Royal Dutch Shell plc said it will appeal a federal judge’s ruling that its shareholders had “adequately” shown reason for the court to examine allegations concerning restatements of its oil and natural gas reserves last year. The class action lawsuit by two pension funds was filed last year questioning whether Shell, and its executives and auditors purposely omitted important facts concerning the company’s restatements (see Daily GPI, June 28, 2004).

In the largest settlement for Enron Corp. shareholders to date, Citigroup agreed to pay $2 billion to settle a class action lawsuit that had accused Citigroup and other investment firms of helping Enron continue to raise money even as it was imploding.

In the largest settlement for Enron Corp. shareholders to date, Citigroup agreed to pay $2 billion to settle a class action lawsuit that had accused Citigroup and other investment firms of helping Enron continue to raise money even as it was imploding.