The US Commodity Futures Trading Commission has approved the New York Mercantile Exchange's plan to convert to a for-profit organization from a not-for-profit membership structure. The plan has already received approval from the members of the exchange and the US Securities and Exchange Commission (OGJ Online, May 12, 2000). NYMEX is also seeking a ruling from the US Internal Revenue Service. If all goes well, membership in the exchange will be converted into equity interest in the renamed New York Mercantile Exchange Inc., an entity to be incorporated in Delaware.
Enbridge Inc., Calgary, is taking a $25 million (Can.) stake in a small Calgary-based company developing fuel cells to supply power and heat to the residential market. The pipeline and natural gas distribution company said it will buy preferred shares in Global Thermoelectric Ltd. to help develop a commercial fuel cell product for homes within 5 years. Global said it expects to deliver its first solid oxide fuel cells to Enbridge for field testing in 2001. Enbridge CEO Brian MacNeill said fuel-cell technology is rapidly evolving to the point where it can provide a clean, economical alternative to large power plants. Enbridge will provide input into design and development of the residential cell and will obtain Canadian distribution rights for the product. Global will control the development process and will own the technology, designs, patents, and trademarks.
Dominion Exploration & Production Inc. has acquired Seitel Inc. subsidiary DDD Energy Inc.'s interests in three South Texas producing properties for $16.9 million. Seitel said the properties represent 5.5 MMcfed of gas. The fields are located in Nueces, Starr, and Victoria counties.
Santa Fe International Corp., Dallas, on Tuesday closed its sale of 1 million ordinary shares to its principal shareholder, Kuwait Petroleum Corp. subsidiary SFIC Holdings (Cayman) Inc. Kuwait Petroleum underwrote a secondary public offering for Santa Fe International's stock. Santa Fe International didn't receive any of the proceeds from the exercise of the option or the offering. Kuwait Petroleum now beneficially owns 43.5 million, or about 38%, of Santa Fe International's ordinary shares. Goldman Sachs & Co., Morgan Stanley & Co. Inc., Credit Suisse First Boston Corp., and Salomon Smith Barney Inc., all based in New York, served as managing underwriters for the offering.
Apache Corp. said its recent equity offering raised net proceeds of $433.9 million to fund year-2000 acquisitions. The company issued a total of 9.2 million shares of common stock at a price of $49/share. Merrill Lynch & Co., Goldman Sachs & Co., Credit Suisse First Boston Corp., and Salomon Smith Barney Inc. managed the underwriting. Including the recently announced acquisition of Occidental Petroleum interests in the Gulf of Mexico, Apache has announced or completed cash acquisitions totaling $860 million this year.