Dynegy News

Energy companies have become a larger presence in the US high-yield bond market this year, relying on debt to fund capex as they expand exploration and production activity, but months of heavy issuance and weaker oil prices are taking their toll. Some recent bond deals have struggled to get across the line, only to end up still getting punished in secondary. Apollo's US$1.1bn LBO bond for Jupiter Resources, for example, has traded as low as 89 - even after coming to market last month with a five-point discount. "A lot of high-yield energy companies, particularly those developing shale plays, are spending more money than they are taking in," Patrick Faul, head of research at Calvert Investments, told IFR.

HB Rentals, a Superior Energy Services company, has named Peter Armstrong as vice president of business development, announced Deidre Toups, HB Rentals president. Based in Houston, Armstrong’s responsibilities include new market analysis, managing the corporate marketing function and driving growth through global customer relationships. Consistent with HB Rentals’ global focus on innovation, Armstrong will work closely with international customers in both the onshore and offshore remote living accommodations markets to identify needs and analyze potential solutions.

Greene’s Energy Group (GEG), a provider of integrated testing, rentals and specialty services, has named Brad Farnsworth as Chief Financial Officer, announced Chief Executive Officer Bob Vilyus. Based in Houston, Farnsworth will report to the CEO and assume a strategic role in overall company management. He will take on the daily role of planning, implementing, managing and controlling all financial-related activities of the company. This includes direct responsibility for accounting…

The Offshore Technology Conference (OTC) annually attracts a global audience of leading engineers, managers, and scientists to the heart of the oil and gas industry. It was 1969 when OTC made its debut in Houston, a big year for the energy industry: oil was discovered in the North Sea; environmentalists were blocking the Trans-Alaskan pipeline that would bring North Slope oil supplies to the lower 48 states; oil rich countries in the Middle East and North Africa were demanding a bigger share of oil profits; and oil prices were positioned for takeoff. That inaugural event was modest by today’s standards, attracting just 4,200 offshore professionals and 125 exhibitors-less than one-tenth the turnout of recent years. Currently OTC is the offshore industry’s largest annual gathering.

Dynegy Storage confirmed that an incident occurred at its Rough offshore facility at 9:30am today. The platform is located 24 miles from the mouth of the RiverHumber and 27 miles from Bridlington off the East Coast of the U.K. A factory fishing vessel, the Marbella, owned and operated by J. Marr Ltd of Hull, hit the South West leg of the BD accommodation platform. There were no reported injuries. All 128 personnel on the facility were accounted for and moved safely onto the linked production platform. Dynegy Storage organized the safe evacuation of 109 of the 128 personnel. They were winched off the platform and lowered onto a standby vessel, the Navion Europa. 48 were taken by helicopter to Humberside Airport.

During May, SMIT Salvage dealt with casualties in Japanese waters and in the Red Sea. On May 1, the 260,619 dwt tanker Front Tobago was making for Japan when her main engine failed while proceeding off the Ryuku Islands, Japan. This 1993-built VLCC was carrying 240,00 tons of crude. An inspection revealed that the tanker’s crankshaft was damaged. The owners awarded SMIT a contract on May 2. The SmitWijs Singapore was mobilized to tow the Front Tobago to an anchorage outside the Economic Exclusion Zone, off Taiwan. On arrival, the cargo was discharged by ship-to-ship transfer. SMIT then mobilized the tug De Yue to tow the vessel from Taiwan to Singapore. The vessel arrived on May 23.

Chevron Corp. has announced a $5.2 billion capital and exploratory spending program for 2000. "Our spending program reflects continued confidence in our company's prospects for growth," said Chevron Chairman and CEO Dave O'Reilly. The 2000 plan is 16.5 percent less than estimated actual 1999 spending because of two acquisitions. The company plans to invest $3.6 billion, or 69 percent of total 2000 spending, in worldwide exploration and production. Spending in the U.S. will be $1.3 billion. The program includes funding for growth projects in the U.S., where deep-water gross production reached 98,000 bpd of oil and equivalent gas from the Gemini and Genesis fields at year-end 1999; and in Canada, where the company will participate in the Athabasca Oil Sands Project (20 percent interest).

Despite initial contentions that there were only two major oil spills in the wake of Katrina, details released by the U.S. Coast Guard indicate that the problem is much larger. According to the USCG, oil pollution containment and recovery operations continue in Southeast Louisiana resulting from the destructive force of Hurricane Katrina. The following information on each spill is current as of 5 p.m., September 15. Bass Enterprises Production Company – Cox Bay, La., near mile marker 35 Mississippi River· The product at the Bass Enterprises Production Company Cox Bay Facility is contained mechanically and naturally and is being recovered and pumped into barges for transport to reclamation facilities.

Personnel from the multi-agency unified command here continue to assess, investigate and oversee the cleanup of six major and three medium oil spills caused by damage to facilities after Hurricane Katrina struck southeast Louisiana. Cleanup efforts continue at the following facilities: Chevron Empire Terminal in Buras, La.; Sundown East and Sundown West, both in Potash, La.; Bass Enterprises Production Company Cox Bay facility at mile marker 35 on the Mississippi River; Bass Enterprises Production Company in Pointe a la Hache, La.; Dynegy Venice in Venice, La.; Murphy Oil in Meraux, La.; Shell Pilot Town in Pilottown, La.; and Shell Nairn in Port Sulphur, La.