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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Ed Ajootian who wrote (26163)	10/6/2003 6:10:54 PM
From: Cogito Ergo Sum	Read Replies (1) \| Respond to of 206085

Ed, Darlington nuke torontostar.com Oct. 4, 2003. 01:00 AM Darlington unit joins off-line list `Geriatric units' raise fears about winter demand Hydro system loses another power generator DANA FLAVELLE BUSINESS REPORTER Ontario's electricity system lost the use of another generator early yesterday morning, taking nearly 500 megawatts of power out of a system already operating at less than two-thirds capacity. The unexpected shutdown, which occurred at 4 a.m. during a period of relatively low demand, had little immediate impact on wholesale prices for electricity, according to data published by the Independent (Electricity) Market Operator. However, the average price had reached $74.55 a megawatt hour by 11 a.m. yesterday, nearly double the regulated price cap of $43 a megawatt hour for retail and small business consumers. Consumers and small business continued to pay the capped amount. The price hike affects only large electricity users. The IMO will not release the unit's location until today for competitive reasons. The latest shutdown comes a day after one of the largest nuclear reactors in the province was unexpectedly forced out of service, taking 850 megawatts off line. Unit 1 at the Darlington nuclear power station in Pickering shut down at 9:21 a.m., causing the wholesale price of electricity to jump briefly to just under $300 per megawatt hour. The price on Thursday fell to more normal levels as the IMO secured alternate sources of supply. It's unclear why the unit at Darlington was forced out of service or for how long. Ontario Power Generation, which owns the unit, was unavailable for comment late yesterday after identity of the Darlington Unit 1 was revealed on the IMO's Web site after 4 p.m. The two shutdowns come at a time when nearly 9,000 megawatts of power are already out of service due to planned shutdowns. Fall is an ideal time to conduct routine maintenance while energy demand is low, IMO spokesperson Terry Young explained. However, some hydro watchers fear not enough of Ontario's aging plants will be back up and running in time to meet winter demand. "We've got all these geriatric nuclear and coal-power units. All but four of the 40 units are past middle age and many are past their expiry date," said Tom Adams, executive director of the advocacy group Energy Probe. Adams said the Darlington outage might be a temporary blip. The unit isn't known to have a history of serious problems. Kastel

To: Ed Ajootian who wrote (26163)	10/7/2003 7:56:32 AM
From: John Carragher	Read Replies (2) \| Respond to of 206085

I doubt there is much money in retail gas... for example. mobil sells its service station and terminal business around eight years ago in the northeast region.. to Tosco.. a couple of years later Tosco sells it all to Conoco,, now conoco sells it all to a Canada firm... These companies do not want to be in retail busines.. too much exposure to all kinds of problems, large risk, and big overhead. Conoco Sells Circle K to Couche-Tard Monday October 6, 4:32 pm ET By Patrick White MONTREAL (Reuters) - Canada's biggest convenience store operator is snapping up a chain of gas stations and convenience stores from ConocoPhillips (NYSE:COP - News) as the U.S. energy giant moves out of the retail business to focus on wholesale markets. ADVERTISEMENT Montreal-based Alimentation Couche-Tard Inc. (Toronto:ATDb.TO - News) said on Monday it would pay $830 million for 1,600 Circle K stores in a deal that will make it the fourth-largest convenience store operator in North America. Circle K operates stores, restaurants and gas bars in 16 states, including Arizona, California and Florida. The agreement, expected to be completed by December, is the latest in a string of U.S. acquisitions by Couche-Tard, and the company said more deals could be on the way. "There is some room for expansion on the east side (of the United States)," said Alain Bouchard, Couche-Tard's chairman and president and chief executive. Couche-Tard shares jumped 23 percent, or C$3.90, to C$21.00 on the Toronto Stock Exchange (News - Websites) -- a record high -- on unusually heavy trade volume of almost a million shares. ConocoPhillips stock gained 47 cents, or 0.84 percent, to $56.40 on the New York Stock Exchange (News - Websites). Couche-Tard said the acquisition will give it a network of 4,630 stores with C$8.8 billion ($6.57 billion) in annual sales and C$155 million in profit. Currently, it is No. 7 in North America behind 7-Eleven and five major oil companies. The deal, which includes a five-year fuel supply agreement with ConocoPhillips, would offer Couche-Tard about $50 million in annual cost savings and would add immediately to earnings per share, the company said. It expected earnings per share to rise to C$1.10 before cost savings, from 81 Canadian cents a share in the 2003 fiscal year which ended July 20. Houston-based petroleum company ConocoPhillips, the No. 3 U.S. oil company and the nation's largest oil refiner, said it will use the proceeds to pay down debt, which stood at $20 billion at the end of last year. Banc of America Securities (News - Websites) energy analyst Tyler Dann said the transaction will slash the number of Conoco employees by 17,400, or 31 percent, to 38,400 worldwide, adding he expected the tax impact of the transaction to be fairly neutral. ConocoPhillips intends to retain its wholesale marketing business, selling gasolines that are then sold by third parties. The company markets gasoline under the Conoco, "76" and Phillips 66 brands. NOTE............ It wants to shift capital investment into more profitable pursuits, exploration and production of oil and gas. Friedman Billings Ramsey analyst Jacques Rousseau said the oil company had been lucky to find a buyer. "It's good that they sold the whole enchilada" in one deal, he said. "With so many people trying to get out of the retail business, there aren't many buyers." Rousseau said the retail business is expected to grow even less profitable as high-volume stations located at big-box retailers such as Wal-Mart (NYSE:WMT - News) or Costco (NasdaqNM:COST - News), push down margins. Couche-Tard, known in Canada for its banners Couche-Tard, Mac's and Beckers, will finance the acquisition by issuing C$223 million of class B subordinated voting shares in a private placement and arranging C$1.2 billion in debt financing and a revolving credit of C$150 million. (Additional reporting by Joseph Giannone in New York) PS E&P is the game in town and always has been.. refining and Marketing has been a loser.