South

Cabot Oil &Gas Corp. plans to acquire the onshore South Louisiana properties of Oryx Energy Co. for about $72 million. Under the terms of the agreement, Houston-based Cabot will purchase 10 fields (six operated, four non-operated) covering 34,345 net acres with 68 producing wells. The acquired producing assets are concentrated in three primary fields that each provide Cabot with a high working interest. These fields make up 80% of the value assigned to the transaction.

CMS Energy surprised the industry early last week when itreached south from its Michigan gas and electric distribution baseto buy the Panhandle Eastern and Trunkline Gas pipeline companies -pipes, storage and LNG terminal – from Duke Energy, locking in itsown supply line to the Midcontinent and Gulf Coast. The companyalso articulated a strategy to capitalize on demand for gas-firedpower generation in the Midwest, and ended the week bydemonstrating it.

In a surprise move announced Monday CMS Energy reached southfrom its Michigan distribution base to buy the Panhandle Easternand Trunkline Gas pipeline companies — pipes, storage and LNGterminal — from Duke Energy, solidifying its own supply line tothe Midcontinent and Gulf.

American Electric Power (AEP) and Central and South West (CSW)said a recommendation from an Oklahoma Corporation Commission (OCC)administrative law judge creates a procedural hurdle, but “does notquestion the merits of the merger” of the companies and should notdelay its completion.

The futures market again came under selling pressure onWednesday as traders embraced the possibility Hurricane Georgeswould not be a threat to natural gas concerns in the Gulf ofMexico. The October contract was able to post an optimistic open at$2.23 before profit taking led the contract to settle at $2.131, a5.5 cent loss for the day.

The futures market followed-through on its usual hurricanescript Wednesday by reversing early week price spikes to plummetlower as Hurricane Earl plodded toward Florida and away from gulfcoast production. “Buy the rumor, then sell the fact,” is the adageoften bandied about when there is the potential for a hurricane todisturb supplies in the gulf and yesterday the phrase rang true asdismal fundamentals factors once again took center stage in themarket. That carried the October contract down 13.4 cents to settleat $1.652.

Canadian prices were strong Thursday, but it was a verydifferent market south of the border. Nearly all U.S. points werefalling between a nickel and a dime in what several sources agreedwas a “very quiet” trading day near the end of a quiet tradingweek. One marketer said he thinks everybody in the industry wantsto go play golf and say, “See you Sept. 1.”

NorAm Interstate Pipelines bought the intrastate Illini Pipelinefrom Houston-based Nuevo Energy Co. Illini Pipeline operates insouth central Illinois, serving customers in the East St. Louismetropolitan area. The line is about 70 miles long and has capacityup to 45,000 MMBtu/d. NorAm will continue to operate Illini as anintrastate system and expects to take over operation of the Illinisystem this summer.

Northern Indiana Public Service Co. (NIPSCO) announced it isexpanding its NIPSCO Choice program to an additional 32,000residential customers in the South Bend area this summer and willintroduce the program to Fort Wayne-area residents early next year.In addition, the number of commercial and small industrialcustomers eligible to choose alternate suppliers will increase to10,000.