Units

Boosted by stronger results in its regulated business units, El Paso Corp. reported last week that it recorded a profit in 2Q2004. With Securities and Exchange Commission (SEC) approval, El Paso filed the quarterly statement late to reconcile prior income statements between 2001 and 2003.

Kinder Morgan Inc. (KMI) has sold its 300-mile TransColorado Gas Transmission system to affiliate Kinder Morgan Energy Partners LP (KMP) for $275 million, including $210 million in cash and 1.4 million KMP common units. CEO Richard D. Kinder said the sale should be immediately accretive to earnings and cash flow at KMP, producing first-year distributable cash flow of $35 million. It also is expected to be modestly accretive to KMI earnings.

Kinder Morgan Inc. (KMI) has sold its 300-mile TransColorado Gas Transmission system to affiliate Kinder Morgan Energy Partners LP (KMP) for $275 million, including $210 million in cash and 1.4 million KMP common units. CEO Richard D. Kinder said the sale should be immediately accretive to earnings and cash flow at KMP, producing first-year distributable cash flow of $35 million. It also is expected to be modestly accretive to KMI earnings.

Florida Gas Transmission said Friday it is performing unscheduled maintenance on one of the three compressor units at its Sabine Pass (LA) interconnect with Transco. Starting with the Timely Cycle for Saturday’s gas day, FGT planned to reduce the interconnect capacity to 100,000 MMBtu/d. Current estimates indicate that the unit will be down for about two weeks. The pipeline also informed customers that operational capacity at its ANR interconnect in St. Landry Parish, LA was increased Friday from 125,000 Dth/d to 138,000 Dth/d until further notice. The capacity had been cut from its normal 250,000 MMBtu/d in mid-July due to reduced deliveries from ANR (see Daily GPI, July 16). An Overage Alert Day notice on FGT continued through at least Friday at 25% tolerance for negative imbalances.

Two units at CIG’s Rawlins (WY) Compressor Station will be out of service Aug. 1-31, reducing capacity through the station by 150 MMcf/d. In Utah, the entire Natural Buttes Compressor Station will be out of service Aug. 9-23 for plant upgrades and modifications, during which nominations will be scheduled to zero. In conjunction with the Natural Buttes outage, the Questar 101 Meter Station will be down with nominations scheduled to zero Aug. 9-12.

Calgary-based Provident Energy Trust has acquired all of the outstanding shares of Olympia Energy Inc. and Viracocha Energy Inc. The transactions are payable through Provident units, exchangeable shares and the assumption of existing debt and working capital. With the new acquisitions, Provident estimates its annual production will be 30,000 boe/d. Based on an independent engineering review, Provident’s proved reserves will increase 46% to 51.8 MMboe from 35.5 MMboe, with a proved developed reserve life index (RLI) of 4.6 years. Proved reserves will increase 48% to 62.1 MMboe from 41.8 MMboe, with a proved RLI of 5.9 years. Proved plus probable reserves will increase 49% to 81.6 MMboe from 54.9 Mboe, with proved plus probable RLI of 6.2 years. Provident is an open-ended energy income trust that owns and manages an oil and gas production business and a midstream services business. Its energy portfolio is focused in Western Canada.

Constellation Energy Group has consolidated three subsidiaries, Alliance Energy Services, Blackhawk Energy Services and Kaztex Energy Management, into the new Constellation NewEnergy-Gas Division, a full-service provider of natural gas supply, transportation and related services to businesses throughout North America. The company said the move would result in operational efficiencies and provide improved brand recognition.

Constellation Energy Group has consolidated three subsidiaries, Alliance Energy Services, Blackhawk Energy Services and Kaztex Energy Management, into the new Constellation NewEnergy-Gas Division, a full-service provider of natural gas supply, transportation and related services to businesses throughout North America. The company said the move would result in operational efficiencies and provide improved brand recognition.

FERC on Friday accepted a settlement hammered out between the Commission’s enforcement staff and Houston-based units of Duke Energy that resolves outstanding matters relating to the Western electricity crisis in 2000-2001. The $2.5 million that Duke has agreed to pay resolves pending issues stemming from a FERC staff investigation of the West’s energy problems.