Transaction

The French government will hold a 34% stake in a new global energy company formed by a $47 billion merger of Suez and French government-owned Gaz de France. The transaction was quickly crafted over the weekend to discourage a possible bid for Suez by Italian utility company Enel. It is expected to be completed in the second half of this year.

In a four-company transaction announced Wednesday, Russia’s Gazprom completed its first swap of pipeline gas for an LNG cargo with Gaz de France, Med LNG & Gas and Shell. Under the deal, Gazprom will deliver additional pipeline gas to Gaz de France in Europe and in return will purchase an LNG cargo from Med LNG & Gas, a joint venture of Gaz de France and Sonatrach. The LNG cargo is being sold to Shell Western LNG for delivery to the Cove Point import terminal in Maryland, in early December.

A day after its founder and CEO announced plans to step down at the end of the year, EnCana Corp. reported a disappointing 38% drop in third quarter net earnings from continuing operations to $266 million (30 cents/share) compared to $432 (46 cents/share) in 3Q2004. Making matters even worse, the company slightly lowered its production forecast.

NRG Energy is in advanced talks to buy Texas Genco Holdings Inc. in a transaction that is expected to be valued at $5 billion or more, the Wall Street Journal reported on Wednesday. Shares of NRG rose 3.66% on the news, finishing Wednesday’s trading session up $1.52 to $43.05.

Goldman Sachs Group has agreed to acquire Zilkha Renewable Energy, the two companies said on Monday. The transaction is subject to regulatory approvals, is expected to close in the second quarter of 2005 and the sale price was not disclosed.

Dynegy Inc. on Tuesday completed the sale of its Sherman, TX-based gas processing facility to Dornick Hills Midstream Ltd., which is based in Dallas. The transaction resulted in a pre-tax gain for Dynegy of $17 million.

Dynegy Inc. on Tuesday completed the sale of its Sherman, TX-based gas processing facility to Dornick Hills Midstream Ltd., which is based in Dallas. The transaction resulted in a pre-tax gain for Dynegy of $17 million.

Williams has completed the buy-back of nearly $793 million of its debt, but as a result, it will take a third quarter charge on the transaction. The Tulsa-based energy company has been working to cut long-term debt to less than $8 billion by the end of 2005, and at the end of the second quarter, it had pared it to $9.8 billion. The company paid a premium of $135 million over the face value of the $793 million of its 8.6% senior notes, which are due in 2010. Williams bought back 99% of the notes, it said. The third quarter pre-tax charge will total about $155 million for the premium and related fees and expenses. Williams retained Citigroup Global Markets Inc. to serve as the lead dealer manager and solicitation agent. Banc of America Securities LLC, J.P. Morgan Securities Inc., and Lehman Brothers Inc. served as the co-dealer managers and solicitation agents. Global Bondholder Services Corp. served as the information agent for the tender offer.

With the sale of mature oil-producing properties in east central and southern Alberta to Harvest Energy Trust for US$395 million, EnCana Corp. said Thursday it has completed the first tranche of asset sales that it announced following the completion of its merger with Tom Brown in April. The company now plans to sell additional assets over the next 12 months representing another 15,000-35,000 boe/d of production.