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Sept. 9-13: PG&E files reorganization plan; GE sheds Baker Hughes shares

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Sept. 9-13: PG&E files reorganization plan; GE sheds Baker Hughes shares

A look back at successes and setbacks in the energy industry.

Highs

FORTIS — Fortis Inc. on Sept. 10 announced a five-year, C$18.3 billion capital investment plan for 2020 through 2024. "Three years into our organic growth strategy, we are pleased to announce a C$1 billion increase in our five-year capital plan," Fortis President and CEO Barry Perry said in a news release. The company said it expects its consolidated rate base to increase to C$34.5 billion in 2022 from C$28 billion in 2019. Fortis also increased its dividend to 47.75 Canadian cents per common share.

BLACKJEWEL — Bankrupt coal producer Blackjewel LLC in a Sept. 9 letter alerted furloughed western U.S. coal miners to a possible recall. The letter notes financial difficulties led the company to lay off most of the workers at its Belle Ayr and Eagle Butte coal mines in the Powder River Basin. "The company is currently considering restarting production efforts at the facilities and, as a result, may be in the position to recall furloughed workers," the letter states. "The company does not know specifically when it would restart production, but if it is in the position to do so, it could restart operations during the next several days or during the coming weeks." Contura Energy Inc. has agreed to purchase the mines and won a bankruptcy auction to take over the assets in August. Approval of the sale is conditional on reaching an agreement with government officials.

Between

PG&E — PG&E Corp. and utility subsidiary Pacific Gas and Electric Co., or PG&E, on Sept. 9 filed their long-awaited joint plan of reorganization with the federal bankruptcy court in San Francisco. The debtors signaled their intent to raise an initial up to $14 billion in equity and potentially more than $30 billion in debt and equity in order to emerge from bankruptcy by June 30, 2020. The reorganization plan proposes to cap the debtors' wildfire liabilities at nearly $18 billion. PG&E Corp. and PG&E on Sept. 13 announced an $11 billion settlement in principle tied to 2017 and 2018 deadly wildfires. The settlement is subject to confirmation by the federal bankruptcy court. In addition, PG&E largely rebuffed a $2.5 billion cash offer from San Francisco leaders to acquire the troubled utility's electric distribution and transmission assets.

GE — General Electric Co. is paring down its stake in Baker Hughes to below 50% through the sale of millions of shares in the oilfield services company. The industrial conglomerate and its affiliates on Sept. 10 launched a secondary offering of 105 million shares of Baker Hughes Class A common stock. GE on Sept. 11 priced its sale at $21.50 per share, increasing the secondary offering to 115 million shares, for estimated proceeds of $2.47 billion. Underwriters have a 30-day option to buy up to 17.25 million additional class A shares. Baker Hughes is not offering any class A shares and will not receive any proceeds.

Lows

ALTA MESA — Houston-based oil and gas operator Alta Mesa Resources Inc. announced Sept. 12 it filed for Chapter 11 bankruptcy protection and revamped its leadership team. Alta Mesa said in a news release it made "considerable progress" in reducing costs and improving well results but bankruptcy protection became unavoidable. "[Alta Mesa and Alta Mesa Holdings LP] continue to operate against a historically challenging commodity price environment and a capital market that is highly constrained for energy companies. Ultimately, these factors made bankruptcy protection the best option for the companies as they continue production operations while negotiating with their lenders," the company said.