Tulsa

Williams stock fell to a 20-year low in trading Monday after the Tulsa-based energy company reported plans to post a recurring loss for the second quarter, largely due to failing conditions related to its energy marketing and trading business, sparking speculation that cash-strapped Williams could become the target of a takeover. The company said it would slash its dividend by 95% to one cent a share from 20 cents to conserve cash, and was “moving quickly” to complete a new secured financing arrangement to shore up its balance sheet.

Williams stock fell to a 20-year low in trading Monday after the Tulsa-based energy company reported plans to post a recurring loss for the second quarter, largely due to failing conditions related to its energy marketing and trading business, sparking speculation that cash-strapped Williams could become the target of a takeover. The company said it would slash its dividend by 95% to one cent a share from 20 cents to conserve cash, and was “moving quickly” to complete a new secured financing arrangement to shore up its balance sheet.

Tulsa-based Vintage Petroleum Inc., highly leveraged with Argentina assets negatively affected by the country’s economic problems, Tuesday said it is turning down a restructuring offer by 8.9% shareholder BP Capital Energy, which has proposed, among other things, that Vintage sell all of its North American assets and be based only in Latin America.

Topeka, KS-based Western Resources Inc. said it is planning to sell its $960 million stake in Tulsa-based Oneok. Western subsidiary Westar Industries has engaged JP Morgan to advise it in the sale of 4.7 million shares of Oneok common stock and preferred stock that is convertible into 39.9 million additional shares of Oneok common stock, representing about 44.5% of total Oneok shares. Oneok is a midstream gas transporter in the Midcontinent region and the largest natural gas distributor in Kansas and Oklahoma, operating as Kansas Gas Service and Oklahoma Natural Gas, which serve 1.4 million customers. Western Resources has total assets of $6.6 billion, including security company Protection One and electric utility Westar Energy, which serves 640,000 customers in Kansas.

A unit of Tulsa-based Williams on Friday completed the initial phase of a South Texas asset sale to a Houston-based subsidiary of Enbridge Inc. Last October, the Canadian-based Enbridge agreed to purchase South Texas natural gas gathering, treating and transmission assets from Williams for approximately $50 million (see Daily GPI, Oct. 12, 2001).

In what one analyst described as setting the pace for the energy industry, Tulsa-based Williams last week said it plans to cut capital spending by $1 billion, or 25%, next year and sell non-core assets to raise between $250 million and $750 million in a scheme to strengthen its balance sheet. Williams also plans to issue $1 billion in mandatory convertible preferred securities in 2002, all steps in a plan to retain its investment-grade credit rating.

Faced with what an executive called the “new reality in financial markets,” Tulsa-based Williams said Wednesday it would cut capital spending by $1 billion, or 25%, next year and sell non-core assets to raise between $250 million and $750 million in a scheme to strengthen its balance sheet. Williams also plans to issue $1 billion in mandatory convertible preferred securities in 2002, all steps in a plan to retain its investment-grade credit rating.

Tulsa-based Williams on Monday launched uE, a cross-commodity price index for both spot and future energy prices, as a companion to its web-based EnergyNewsLive.com. Similar to the Dow Jones for equity markets, the Williams uE will offer an equivalent benchmark for the overall price of energy, measuring the price average of eight individual commodities: electricity, natural gas, unleaded gasoline, heating oil, ethane, propane, residual fuel and jet fuel.

Tulsa-based ONEOK Inc. has promoted Ed Farrell, president of Oklahoma Natural Gas Co. (ONGC) to senior vice president administration. The promotion takes effect Sept. 1. Farrell, 58, has been with ONEOK since 1995. Sam Combs, now western region vice president of ONGC, will become president of ONGC, and Combs will be succeeded by Dan Walker, now vice president of operations for ONGC and Kansas Gas Service Co. Roger Mitchell, manager of corporate communications and advertising for ONEOK, also was promoted to eastern region vice president of ONGC.