BP Amoco and the Williams Cos. announced last week they have reached a partial settlement with the Southern Ute Indian Tribe, while leaving the key issues of their dispute to be determined in an upcoming Supreme Court case. The settlement released Williams and BP Amoco from all claims included in the Southern Utes’ lawsuit against them but did not address key ownership issues.
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Move to Upside Breaks Cash Flatness Pattern
Cash prices hinted Thursday that they’re not ready to settleinto the same kind of stagnation period that characterized much ofFebruary’s activity. Riding the momentum of a rising Henry Hubfutures contract, stronger crude oil futures (back over $13/bbl)and snowy weather in various regions, nearly all points roseanywhere from 2 cents to a dime with most increases in the vicinityof a nickel.
Cost Cuts Help Majors Temper Low Prices
Chevron and Arco both said yesterday they will be chopping $500million from their costs for 1999. “To successfully weather thebusiness conditions of low crude oil, natural gas and commoditychemicals prices, we have to continue to find ways to minimize thecost of operating our business,” said Ken Derr, Chevron’s CEO.
UPR, ARCO Take Large Write-Downs
Union Pacific Resources Group and ARCO warned last week theywill be taking massive asset write-downs and restructuring chargesduring the fourth quarter, reflecting their continuing struggle todeal with low crude oil and gas prices.
California Oil for Gulf Gas
Atlantic Richfield (ARCO) and Mobil Exploration & ProducingU.S. last week announced they closed an exchange transaction thatwill allow ARCO subsidiary Vastar Resources to boost its gasproduction and reserve activity level in the Gulf of Mexico shelfby one third, and Mobil’s exploration and production arm tosignificantly increase its stake in California oil production. Thedeal closed on Oct. 31st.
ARCO, Mobil Exchange Properties
Atlantic Richfield (ARCO) and Mobil Exploration & ProducingU.S. yesterday announced that they closed an exchange transactionthat will allow ARCO subsidiary Vastar Resources to boost its gasproduction and reserve activity level in the Gulf of Mexico shelfby one third, and Mobil’s exploration and production arm tosignificantly increase its stake in California production. The dealclosed on Oct. 31st.
Weekend Prices Crash on Lack of Fundamentals
Prices for the weekend were crashing faster and farther Fridaythan they had run up the day before. Declines that were often inthe area of 20 cents left many points not far above Octoberindexes.
Energy Stocks Rise on Market’s High Tide
Energy stocks gave credence to the adage that a high tide raisesall boats as they followed Wednesday’s market rally, generallyrising one to two points. While energy shareholders are surelyenvious of the leap made by the market stars’ – technology stocks -the share price boost was welcome good news in a marketplaceplagued by depressed commodity prices.
Stone & Webster, Sonat Combine Services
Stone & Webster and Sonat Marketing Company L.P., haveannounced they are forming a 50/50 joint venture to provide largecustomers with a variety of bundled energy management services,including building or upgrading power and steam generationequipment, commodity supply, portfolio and risk management,metering, billing, operations and maintenance, as well as selectedasset ownership.
CalEnergy, MidAmerican Ink Merger Pact
The boards of directors of CalEnergy Co. Inc. and MidAmericanEnergy Holdings Co. announced yesterday that they have signed adefinitive merger agreement. Under the deal, Omaha, NE-basedCalEnergy has agreed to acquire neighboring MidAmerican Energy for$4 billion in a stock transaction.