Finance/Companies news briefs, Aug. 1
Pembina Pipeline � Federated Pipe Lines � Imperial Oil � Anderson Exploration � Cambridge Energy � Enterprise Products Partners � Hawks Industries � Universal Equities Consolidated � David H. Peipers � The Cornerhouse � The Winsome LP � Vectren Enterprises � Haddington Energy Partners � Chase Capital Partners � Nuevo Energy � Mariner Energy � Shell Exploration & Production � Agip Petroleum
Pembina Pipeline Income Fund subsidiary Pembina Pipeline Corp., Calgary, has completed its purchase of Federated Pipe Lines Ltd., also of Calgary, from Imperial Oil Ltd. and a subsidiary of Anderson Exploration Ltd. Pembina said it also closed the purchase of Cynthia Pipeline from Toronto-based Imperial. Following the completion of this transaction, Pembina's combined pipeline network comprises roughly 7,000 km of pipeline and related pumping and storage facilities. Total consideration paid by Pembina for the Federated shares was $340 million (Can.), including the assumption of Federated debt. A further $9 million was paid for the Cynthia pipeline. The transactions were financed utilizing a new $420 million syndicated credit facility arranged with a Canadian chartered bank.
Cambridge Energy Corp., Cocoa, Fla., has completed the last of a three-part private financing transaction totaling $630,000. Terms of the financing are not available. Perry West, chairman and CEO of Cambridge Energy, said the financing marks the first step of its 12-month plan to raise $15-20 million to ramp up and aggressively expand its existing operations. West said it also gives the company the increased flexibility to raise its proven oil and gas reserves and revenues.
Enterprise Products Partners LP, Houston, said its board has authorized the repurchase of up to 1 million of Enterprise's outstanding common units over the next 2 years. The company may use the repurchased units as a currency in connection with significant and accretive acquisitions to maintain an appropriate capital structure and increase shareholder value.
Shareholders of Hawks Industries, Casper, Wyo., voted their approval of Hawks' plans for the private placement of up to 22,171,875 shares of Hawks common stock with Universal Equities Consolidated LLC, David H. Peipers, Cornerhouse LP, and Winsome LP. The placement is expected to close in August. Hawks, which holds interests in oil and gas properties, said Monday that shareholders approved six proposals presented at a special meeting of shareholders held on July 26.
Vectren Enterprises Inc., a wholly owned ventures subsidiary of Vectren Corp., said it agreed to invest $20 million in Haddington Energy Partners LP, which invests in high-deliverability natural gas storage, natural gas gathering, cogeneration, hydrogen generators, compressed air energy storage, distributed generation, and power backup and quality devices, plus emerging technologies like fuel cells, microturbines, and photovoltaics. Chase Capital Partners has also agreed to invest in Haddington, which is seeking $150 million in capital.
Nuevo Energy Co. said that a residential development it is sponsoring near Brea, Calif., has been delayed by local politics. The delayed plan for the Brea Highlands development project has caused Nuevo Energy to defer $20 million of its $140 million capital budget. "Our plans to sell or joint venture the Brea Highlands project after entitlement would have partially funded our 2000 capital program,'' commented Doug Foshee, Nuevo's Chairman and CEO, "but with this anticipated delay the prudent action is to scale back a bit to preserve our firepower and our flexibility.'' The $20 million in capital spending deferrals will come from certain exploratory and development drilling, workovers, and recompletions, and discretionary infrastructure projects. Nuevo acknowledged that the capital deferrals will have some impact on production volumes in the second half of 2000 and the first half of 2001.
Mariner Energy Inc., Houston, has agreed to purchase Shell Exploration & Production Co.'s 50% working interest in the King Kong deepwater Gulf of Mexico development project, located in 3,900 ft of water on Green Canyon Blocks 472, 473, and 517, 150 miles southeast of New Orleans. Mariner paid an undisclosed amount of cash and overriding royalty interest in the field. Mariner will operate the project, and Agip Petroleum Co. Inc. will retain the remaining 50% working interest in the field. Mariner plans to complete a previously drilled well and drill another one, then tie back both wells 16 miles to the Allegheny mini tension-leg platform operated by Agip. Mariner may develop Yosemite prospect on Green Canyon Block 516 jointly with King Kong. Production is expected by Dec. 31, 2001.