Finance/Companies news briefs, June 2
Chevron ... PG&E Energy Services ... Beau Canada Exploration ... Tesoro Petroleum
Chevron Corp. is purchasing a portion of PG&E Corp.'s retail energy services business, PG&E Energy Services, for an undisclosed sum. The deal includes energy management, energy efficiency, billing, and information services, among other products and services, for major commercial, industrial, and institutional customers, as well as related infrastructure assets. Chevron Products Co. Pres. Patricia Woertz said the acquisition will accelerate Chevron's entry into the "vibrant and growing" value-added services segment of the energy market. PG&E Corp. is exiting the retail energy services business to concentrate on wholesale generating, energy commodities trading, and natural gas transmission.
The president and CEO of Beau Canada Exploration Ltd., Calgary, has resigned and the company has been taken off the market temporarily (OGJ Online, Apr. 30, 2000). Bruce Libin, a securities lawyer, has been appointed chairman and says there are no plans to replace outgoing CEO Tom Bugg. He the mid-sized producer will be put back on the market by mid-June. A special committee of the board is now managing the sales process. The company operates in Western Canada and has production of about 15,714 b/oed. As part of a financial restructuring, Beau Canada renegotiated terms of a $42 million (Can.) loan with Enron Canada Corp., extending the loan to Dec. 12 from June 11. Beau is also distributing its controlling interest in unit Genoil Inc. to Beau Canada shareholders.
A class-action lawsuit has been filed against Tesoro Petroleum Corp., San Antonio, Tex., alleging that analysts and the investing public were misled by the indicator margins posted on Tesoro's internet site and incorrectly believed that the firm's average refining margins were higher than they actually were. The law firm of Wolf, Haldenstein, Adler, Freeman & Herz LLP, New York, claims Tesoro CEO Bruce Smith admitted the firm failed to adjust the discount factor used to account for variations when oil prices became volatile earlier this year. The suit, filed on behalf on all Tesoro shareholders who purchased securities between Jan. 3 and May 3 of, was filed in the US District Court for the Western District of Texas in San Antonio.