Stock

Late last Friday after the stock markets had closed for the week, Pacific Gas and Electric Co. announced it had reached a $295 million settlement with plaintiffs related to toxic chromium exposure in the 1950s, 60s and 70s at three gas compressor stations spread across its 350-mile southern California gas transmission pipeline system from the Arizona border to Kettleman on the northwest side of the state’s central valley. Financial effects from the settlement — the second nine-figure deal involving chromium 6 — will be reflected in the utility parent company’s 2005 earnings report on Feb.17, the company said.

Williams’ board on Wednesday approved a 50% dividend increase to 7.5 cents per share on the company’s common stock. This is the second increase in the Williams dividend over the past year. In November 2004, Williams increased its dividend from a penny to a nickel. “We’re successfully executing our business plan and using our financial discipline to create superior, sustainable growth in shareholder value,” said CEO Steve Malcolm. “The dividend increase reflects the confidence we have in our business and our substantial liquidity position. Williams’ strong, sustainable cash flow is enabling growth initiatives, credit improvement and a positive return to our shareholders.”

Kerr-McGee Corp.’s chemicals unit, New-Co Chemical Inc., has filed an initial public offering (IPO) for up to $300 million in Class A common stock. However, Kerr-McGee still holds an option to sell New-Co if the opportunity arises.

Magnum Hunter Resources Inc., which will finalize a $1.9 billion stock merger Cimarex Energy Co. in early June, on Wednesday reported oil and natural gas production was up 26% from a year ago. The company also said it remains on track for production to grow 10-16% this year.

With markets becoming more and more hungry for imported liquefied natural gas (LNG), ChevronTexaco Corp. decided now is a good time to stock up on tankers. The company said last week that it has ordered two new LNG carriers from Samsung Heavy Industries of South Korea to support its growing worldwide LNG business.

With markets becoming more and more hungry for imported liquefied natural gas (LNG), ChevronTexaco Corp. decided now is a good time to stock up on tankers. The company said Tuesday that it has ordered two new LNG carriers from Samsung Heavy Industries of South Korea to support its growing worldwide LNG business.

The Royal Dutch/Shell Group on Thursday proposed tightening executive compensation policies to end the use of stock option grants. The plan, which must be approved by shareholders, would make the awarding of share bonuses to its directors dependent on the company’s performance.

Cheniere Energy Inc. said Tuesday it has acquired BPU LNG Inc. in exchange for 1,000,000 restricted shares of Cheniere common stock. BPU LNG’s sole asset is a 33.3% limited partner interest in Corpus Christi LNG LP. As a result of the acquisition, Cheniere said it now controls 100% of the Corpus LNG limited partner interests. In December of 2003, Corpus Christi LNG filed with the Federal Energy Regulatory Commission (FERC) for a permit to build and operate a liquefied natural gas receiving terminal near the city of Corpus Christi, TX with daily processing capacity of 2.6 Bcf. In November of 2004, FERC issued a draft Environmental Impact Statement (EIS) concluding that approval of the proposed project, with appropriate mitigating measures as recommended, would have limited adverse environmental impact. Cheniere said it anticipates that FERC will issue a final EIS and grant its permit in the near future. In addition to the Corpus Christi facility, the Houston-based company is developing Gulf Coast LNG receiving terminals near Sabine Pass in Cameron Parish, LA and near the Creole Trail in Cameron Parish, LA. Cheniere is also a 30% limited partner in Freeport LNG Development LP., which is building an LNG receiving terminal in Freeport, TX.

Southern Union Co. announced Monday that it has priced an offering of approximately 14.9 million shares of common stock at $23.00 per share to pay down debt incurred with its investment in CCE Holdings, LLC, a joint venture with GE Energy Financial Services which purchased CrossCountry Energy LLC from Enron Corp. (see Daily GPI, Nov. 18, 2004). CCE paid Enron $2.45 billion in cash and assumed the debt for 7,400 miles of natural gas pipelines with 4.2 Bcf/d of transportation capacity. CrossCountry owns 100% of Transwestern Pipeline and 50% of Citrus Corp., which owns 100% of Florida Gas Transmission Co. The offering was underwritten by the joint book-running managers, Merrill Lynch, Pierce, Fenner & Smith Inc. and J.P. Morgan Securities Inc. A limited number of institutional investors have agreed to purchase the shares from the underwriters. In addition, Southern Union announced Monday it has launched an offering of $100 million of equity units at $50 per unit, also to pay off debt incurred in the pipeline purchase.