Substantially

Duke Energy reported earnings of $388 million for first quarter2000, up 28% from $302 million, excluding an extraordinary gain,for first quarter 1999. Revenues for the quarter increased 73% overthe prior-year quarter to $7.2 billion, due to strong performancein key business segments.

TXU of Dallas sold substantially all of the assets of its gasprocessing subsidiary in Texas, TXU Processing Co. (TXUP), toCantera Resources Inc. for $105 million. TXUP (previously known asEnserch Processing Inc.) has 162 full-time employees, now bound forCantera, and owns and operates nine gas processing plants suppliedby more than 1,800 miles of company-controlled gathering lines withinstalled gathering compression of more than 34,500 horsepower.

With two more months of breathing room to work out a deal,Southern California Gas Co. has substantially modified its originalrestructuring proposal for the resumption of settlementnegotiations this week in Los Angeles. With SoCalGas leading theway, representatives of 75 interested parties are attempting tohammer out a consensus on how further unbundling is shaped forCalifornia’s natural gas industry.

Many market prognosticators have realized recently that theirgas price projections are quite a bit too low for the rest of theyear because of declining gas wellhead deliverability, a reducedstorage surplus relative to last year and ever increasing gasdemand. The Energy Information Administration joined that crowdyesterday, concluding its wellhead price forecast for the fourthquarter was 25 cents too low. It raised it to $2.41/Mcf in its MayShort Term Energy Outlook.

Unocal Corp.’s Spirit Energy 76 agreed to sell substantially allof its oil and gas assets in Michigan to Quicksilver Resources Inc.for $27 million cash and about $3 million in unregistered commonstock of Quicksilver.

Unocal Corp.’s Spirit Energy 76 agreed to sell substantially allof its oil and gas assets in Michigan to Quicksilver Resources Inc.for $27 million cash and about $3 million in unregistered commonstock of Quicksilver.

EEX Corp. agreed to sell substantially all of its oil and gasproperties in Oklahoma and the Hardeman Basin, North Central Texas,for about $32 million in cash. Lariat Petroleum Inc. is acquiringthe properties in Oklahoma, and Key Production Co. Inc. isacquiring the Hardeman Basin properties. Aggregate daily productionfrom these properties is about 15 MMcfe/d of gas.

Spirit Energy 76, Unocal Corp.’s Lower 48 exploration andproduction unit, agreed to sell substantially all of its oil andgas assets in Oklahoma to Magnum Hunter Production Inc. for about$36 million in cash.

Spirit Energy 76, Unocal Corp.’s Lower 48 exploration andproduction unit reached a definitive agreement to sellsubstantially all of its oil and gas assets in Michigan to NewstarEnergy USA Inc. and Omimex Energy Inc. for about $37.25 million incash and 670,000 shares of stock in Newstar Resources, the parentcompany of Newstar Energy.