“The times, they are a-changing” could be Southern Company’smotto after a recent blitz of reorganization. The company reportedthat its board of directors approved the long-awaited spin-off ofMirant Corp. – formerly known as Southern Energy – and ChairmanA.W. “Bill” Dahlberg is retiring upon completion of thetransaction.
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Southern Restructures Businesses, Dahlberg Retires
“The times, they are a-changing” could be Southern Company’smotto after a recent blitz of reorganization. The company reportedthat its board of directors approved the long-awaited spin-off ofMirant Corp. — formerly known as Southern Energy — and ChairmanA.W. “Bill” Dahlberg is retiring upon completion of thetransaction.
Mexico’s Burgos Basin May Hold 10X More Gas
The natural gas potential in the Burgos Basin of Northeastern Mexico, similar to geology to the Texas Gulf Coast region, may be three-to-10 times higher than previously estimated, according to a comprehensive study by the Gas Technology Institute. GTI found that previous estimates, which put the total undiscovered resource at 9.7 Tcf, might actually be between 21 Tcf and 75 Tcf.
Mexico’s Burgos Basin May Hold 10X More Gas
The natural gas potential in the Burgos Basin of NortheasternMexico, similar to geology to the Texas Gulf Coast region, may bethree to 10 times higher than previously estimated, according to acomprehensive new study by the Gas Technology Institute. GTI foundthat previous estimates, which put the total undiscovered resourceat 9.7 Tcf, might actually be between 21 Tcf and 75 Tcf.
Sign of the Times: Canadian Export Protest
Protesters won the opening skirmish, but still lost the firstbattle in a developing new war over expanding natural gas exportsbetween Canadian conservationists and energy consumers on theattacking side and the industry on the defense.
Futures Give Back Gains in Late-Day Sell-Off
Wednesday afternoons have been interesting times lately in thenatural gas pit at Nymex and yesterday was no exception. Afterspiking as much as 20 cents higher on storage-hype-related buying,the June contract spiraled lower after the report was released. TheJuly contract finished at $4.356, just 0.2-cents above Tuesday’sclose. According to the American Gas Association, 56 Bcf wasinjected into underground storage facilities last week, bringingtotal working gas to 1,274 Bcf or 429 Bcf less than at the sametime last year.
These Are Trying Times for Pipe Projects at FERC
While the sheer number of pending and projected natural gaspipeline projects may be staggering, that’s not what sets themapart from projects that preceded them. Rather, the distinguishingfactor is that they’re coming at a time when the “complexity andvolume” of environmental issues and the level of landowneranti-project sentiment have reached unparalleled heights, says atop FERC official.
Vastar Lets the Good Times Roll
With commodity prices soaring, first quarter producer earningsare coming in at record levels. Vastar Resources reported a massive307% increase first-quarter 2000 net income. Income was tallied at$77.4 million ($0.78 per diluted share), the company’s thirdconsecutive quarterly record, compared to $19 million ($0.19 perdiluted share) in 1Q99. Vastar’s gas production was down nearly 10%to 1,054 MMcf/d, but realized gas prices were up 57 cents to $2.19on average. Crude and condensate production came in at 46.0thousand barrels per day (Mb/d) down from 46.7 Mb/d in the sameperiod last year, but realized oil prices rocketed to $24.73 from$11.16. And gas liquids production increased to 20.8 Mb/d from 9.2Mbd in 1Q99, while realized liquids prices soared to $19.11 from$8.10.
Houston Jury Raps HL&P With $30M in Damages
The other shoe – five times larger than the first – dropped onReliant Energy’s Houston Lighting & Power Co. (HL&P) lastweek in a case that found the utility defrauded three Texas citiesof fees owed for its exclusive right to sell electricity. Adistrict court jury in Houston awarded the three cities $10 millioneach in punitive damages. That’s on top of $4.2 million in actualdamages (about $6 million including interest and attorneys’ fees)awarded two weeks ago.
Houston Jury Hits HL&P With $30M Damages
The other shoe – five times larger than the first – dropped on Reliant Energy’s Houston Lighting & Power Co. (HL&P) Tuesday in a case that found the utility defrauded three Texas cities of fees owed for its exclusive right to sell electricity. Yesterday, a district court jury in Houston awarded the three cities $10 million each in punitive damages. That’s on top of $4.2 million in actual damages (about $6 million including interest and attorneys’ fees) awarded last week (see Daily GPI April 3).