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Williams Cos. Inc. earlier this month announced a number of transactions designed to resolve some its liquidity problems.
The Tulsa-based company--along with other US energy merchants--has been under pressure to gain the capital needed to reduce its debt and strengthen its balance sheet (OGJ, Aug. 5, 2002, p. 30).
Late last month, Williams reported a second quarter loss of $497 million attributable to its energy-trading unit.
Other recent company news includes:
* Paramount Resources Ltd. acquired Summit Resources Ltd. for $332 million, including $80 million in Summit debt. Both companies are based in Calgary.
* AgipPetroli SPA, a unit of Italy's ENI SPA, and Portuguese firm Galp Energia SGPS SA purchased from TotalFinaElf SA its entire gasoline distribution system and network of retail stations in Spain.
* A unit of Enterprise Products Partners LP, Houston, has agreed to acquire the Toca-Western natural gas processing plant and natural gas liquids fractionator in Louisiana from Western Gas Resources Inc. for $32.5 million.
* Magnum Hunter Resources Inc., Irving, Tex., is selling noncore oil and gas properties, including some 1,750 wells, to a new private limited partnership with General Electric Capital Corp. for $50 million, company officials said.
Williams's divestiture plan
"The company's top priorities have been to improve our financial position and resolve regulatory issues facing the company," said Steve Malcolm, Williams chairman, president, and CEO. "These significant financial achievements...demonstrate that we are gaining traction in our efforts to move forward on a stronger foundation," he said.
The transactions amounted to net cash proceeds for the financially strapped Williams of $1.4 billion from asset sales and $2 billion in secured financing, the company said.
The transactions include:
* Houston-based Enterprise …