Mitchell firmly retrenched in natural gas services

Journal Article · Mon Sep 01 04:00:00 EDT 1997 · Pipeline and Gas Journal

OSTI ID:536515

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The past three years, Mitchell Energy and Development Corp. has undergone a massive restructuring that has changed the face of one of the nation`s largest and best-known natural gas/natural gas liquids companies. Facing a rapidly changing industry that frequently has been stung by volatile swings in energy markets, management of the independent company, founded by George Mitchell in 1946, sold off $300 million in non-core assets; reduced its long-term debt by $400 million; instituted a hiring freeze and reduced its workforce by a third, from 2,900 to 1,950, over the last three years. Mitchell negotiated a buyout of its hugely profitable North Texas gas sales contract with Natural Gas Pipeline Company of America as a means of easing its transition to a market-sensitive price environment and reducing its debt. Mitchell also took operational control. Finally, Mitchell has left the real estate business, culminating July 31 with the sale of its real estate subsidiary, The Woodlands Corporation, for $543 million ($460 million net after-tax), further reducing its workforce to 1,100. On Aug. 18, the company said it will use the proceeds to repurchase common stock, retire another $200 million of public debt, make asset niche energy acquisitions and increase capital spending for existing programs. The result is a renewed focus on its exploration and production and gas gathering, processing and marketing businesses.

• OSTI ID: 536515
• Journal Information: Pipeline and Gas Journal, Journal Name: Pipeline and Gas Journal Journal Issue: 9 Vol. 224; ISSN PLGJAT; ISSN 0032-0188
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
ECONOMICS
GAS UTILITIES
MARKETING
NATURAL GAS
NATURAL GAS INDUSTRY
NATURAL GAS LIQUIDS
NATURAL GAS PROCESSING PLANTS
ORGANIZATIONAL MODELS