Peoples Energy Production Co., the affiliate of Peoples Gas,extended a year-long buying binge Thursday, by obtaining 70% ofEnsign Operating Co.’s Arkoma basin assets for $15 million. Theproduction arm of Peoples Energy has now spent $65 million inpartnerships and acquisitions since the fall of 1998.
Thursday
Articles from Thursday
Despite Warm Weather Traders Don Bear Coats
After a volatile three days of seller-dominated trading Tuesday,Wednesday and Thursday last week, the futures market was quietFriday as light pre-weekend short covering was almost perfectlymatched by follow-through selling. The August contract could manageonly a 4.5-cent trading range before finishing 0.1 cents higher forthe day at $2.163. Estimated volume was relatively modest, with55,158 contracts changing hands.
Prices a Bit Softer; Most Points Near or Above Index
The majority of cash points were down a few cents Thursday butstill sticking around in the vicinity of index levels. Despite somenegative influences, the California market even managed to maintainat least a nickel premium to index. Even with a huge swath of rainhaving a cooling effect on the Midwest and Northeast market areas,heat remained the big reason for only a modestly softeraftermarket. A screen drop of almost 9 cents had little impact oncash.
Southern Closes on O&R Generation Purchase
Southern Energy New York closed a previously announced $480million, 1,776 MW purchase of all Orange and Rockland (O&R)Utilities’ generation assets Thursday. At the same time the dealclosed the Southern Energy subsidiary, which was created with thesole intention of operating these newly-acquired assets, wasted notime in proposing a $390 million, 710 MW expansion to the BowlinePoint Generation Station in Haverstraw, NY.
Range Resources, First Energy Form Appalachian Giant
Range Resources Corp. and FirstEnergy Corp. announced Thursdaythe formation of a $1 billion joint venture in the AppalachianBasin. Each company will own 50% of the yet-to-be-named venture.The deal is expected to close within 60 days.
Transportation Notes
Transco extended Thursday the open season for FT service on itsSundance Expansion Project, originally scheduled to end June 1,through June 18. Sundance will provide extra capacity from Station65 in Louisiana to Station 165 in Virginia and is proposed to beginservice by April 1,2002.
Transportation Notes
Questar rescheduled last Tuesday’s planned ball launching toThursday, June 3. Major allocations are expected.
Futures Shrug Off Storage Report Again
For the second straight Thursday, natural gas traders ignored aseemingly bullish American Gas Association storage report bypressuring the market lower in light, long liquidation. The Junecontract was the hardest hit by the sell-off, slipping 6.4 cents to$2.295 in active trading.
Chevron Joins the 1Q99 Loss Crowd
Chevron announced last Thursday it lost 35% of its profitscompared to the same period in 1998. The company reported a netincome of $329 million or $0.50/diluted share versus $507 millionor $0.77/diluted share in 1998’s first quarter. The oil and gascompany sold oil at an average of under $10/barrel (a 20% drop form1Q98 prices) and gas at an average of $1.63/Mcf (a 22% drop from 1Q98).
Chevron Joins the 1Q99 Loss Crowd
Chevron announced Thursday it lost 35% of its profits comparedto the same period in 1998. The company reported a net income of$329 million or $0.50/diluted share versus $507 million or$0.77/diluted share in 1998’s first quarter. The oil and gascompany sold oil at an average of under $10/barrel (a 20% drop form1Q98 prices) and gas at an average of $1.63/Mcf (a 22% drop from 1Q98).