Union

An antitrust suit against Anadarko Petroleum Corp. and itsacquired subsidiary Union Pacific Resources (UPR) came to a closewithout a verdict less than one week after it had begun. Anadarkosettled out of court with American Central Gas Technologies Co.’s,a spokeswoman for Anadarko said. Terms of the agreement were notdisclosed.

Ringing in the new year, UtiliCorp United announced that it completed its $190 million merger with St. Joseph Light & Power on Dec. 31, 2000. The union, which has experienced a bumpy ride since its initial announcement in March 1999, creates Missouri’s fourth largest gas distributor and third largest electricity distributor (see NGI, March 8, 1999).

KeySpan Energy Delivery, which includes Brooklyn Union Gas and anumber of other company affiliates, has reached a proposedagreement with New York officials aimed at restructuring the ratesand services for its natural gas customers in the state.

American Central Gas Technologies Co. was awarded $8.3 millionlast week after an arbitrator ruled that Union Pacific Resourcesand Duke Energy Field Services had monopolized natural gasprocessing in Panola County, the largest natural gas producingcounty in East Texas.

American Central Gas Technologies Co. has been awarded $8.3million after an arbitrator ruled that Union Pacific Resources andDuke Energy Field Services had monopolized natural gas processingin Panola County, the largest natural gas producing county in EastTexas.

Anadarko and Union Pacific Resources (UPR) closed their $5.7billion merger transaction on Friday successfully. Shareholders ofboth companies gave the thumbs-up on the deal on July 13, and bythe end of business on Friday each UPR share received 0.455 sharesof Anadarko common stock.

Shareholders of Anadarko Petroleum and Union Pacific Resourcesvoted to approve a $5.4 billion merger of the two companiesyesterday. The merger calls for UPR shareholders to receive 0.455shares of Anadarko common stock for each of their UPR shares.Anadarko shareholders also voted to increase the size of the company’sboard to 15 members from nine. The combined company will be namedAnadarko Petroleum (see Daily GPI, April4).

For the second time in just over a week Union Pacific ResourcesGroup is selling off non-core assets in North America. MadisonEnergy Advisors will be handling the evaluation, marketing, andsale of almost all of UPR.’s South Louisiana producing assets. Theproperties for sale include 52 wells with 100% working interests inmost of them. The net production from these properties duringDecember 1999 was approximately 16.1 MMCFD, 490 b/d, and 54 liquidsb/d.

The proposed merger of Anadarko Petroleum and Union PacificResources moved forward yesterday when the U.S. Federal TradeCommission (FTC) granted early termination of the statutory waitingperiod required under the Hart-Scott-Rodino Anti-Trust ImprovementsAct. Completion of the merger still is subject to the approval ofthe shareholders of both companies and satisfaction of othercustomary conditions. Under the agreement, which was unanimouslyapproved by each company’s board of directors, UPR shareholderswill receive 0.455 Anadarko common shares for each UPR common sharethey own. The offer is worth about $5.6 billion. Anadarko will alsotake on $2.6 billion in long-term debt from UPR. Closing isexpected in July. UPR will become a wholly-owned subsidiary ofHouston-based Anadarko. The purchase more than doubles Anadarko’sNorth American gas reserves from 2.5 Tcf to 5.8 Tcf. The increasemoves the company from the 13th largest company in terms of NorthAmerican gas reserves to fifth. The increase of production is evenmore pronounced, as Anadarko will go from 170 Bcf/year (20th place)by itself to 634 Bcf/year (sixth place).