Business Briefs

Posted: Thursday, February 22, 2001

Kenai auto dealer expands into Juneau

Bob Favretto, owner of Kenai Chrysler Center, has purchased Lewis Motors from Juneau dealer Harley Lewis.

"We're excited about expanding our Alaska properties into Juneau," Favretto said.

The new dealership will be called Capital Chevrolet.

"Our goal at Capital Chevrolet will be to offer a significant increase in the volume of new and used vehicles for our customers," said Favretto.

Favretto has appointed Rob Skinner to be managing partner of the dealership. Skinner, his wife and four daughters are looking forward to relocating to Juneau from the Kenai area.

"This is an exciting opportunity for myself and the community," said Skinner.

Skinner's efforts, along with those of Favretto, helped to more than double the number of employees at the Kenai Chrysler Center in less than five years. Skinner is hoping for the same effect in Juneau.

Capital Chevrolet will continue to carry the same lines of new vehicles as Lewis Motors: Chevrolet, Buick, Pontiac and Oldsmobile.

Tesoro employees donate to Special Olympics

Tesoro Alaska Co. and its employees recently donated $4,777 to the Central Peninsula Special Olympics.

Holly Norwood, Tesoro Alaska manager of quality control and operations analysis, said the money came from unspent contributions to employee child and elderly care funds. At employees' requests, Tesoro deducts money tax-free from their paychecks for the funds.

Employees can use the funds to pay for child or elderly care, but eventually forfeit unspent contributions. However, federal rules allow donation of unspent contributions to charities. Tesoro employees decided to donate unspent 1999 contributions to Central Peninsula Special Olympics, Norwood said.

DEC inspects food service establishments

The Department of Environmental Conservation last month inspected several central Kenai Peninsula food service establishments. A score of 100 reflects adherence to minimum levels of sanitation. A score of 100-90 is good, 89-85 is acceptable, 84-70 is marginal and less than 70 is unacceptable. Scores for the recent inspections were:

China Sea Restaurant, Soldotna 96

Tustumena Lodge bar, Kasilof 99

Tustumena Lodge restaurant, Kasilof 91

Mountain View Elementary School kitchen, Kenai 99

Pizza Hut #51, Kenai 98

Nero's Pizza, Nikiski 88

AmVets Post #4 bar, Soldotna 98

AmVets Post #4 food service, Soldotna 98

Fred Meyer deli, Soldotna 90

J-Bar-B bar, Soldotna 98

J-Bar-B restaurant, Soldotna 92

Little People Learning World, Soldotna 94

Riverside House bar, Soldotna 93

Riverside House restaurant, Soldotna 91

Safeway #548 China Kitchen, Soldotna 91

Safeway #548 deli, Soldotna 97

Soldotna Kiddie Care 98

Sunshine House, Soldotna 99

Phillips replaces 1,128 percent of 2000 production

Phillips Petroleum Co. replaced 1,128 percent of its 2000 worldwide oil and gas production at an average preliminary finding-and-development cost of $2.39 per barrel-of-oil equivalent. Excluding acquisitions and sales, Phillips replaced 515 percent of its 2000 worldwide production.

Production replacement benefited from the company's April acquisition of Arco Alaska. Without that, Phillips' 2000 production replacement would have been 501 percent. Phillips also booked reserves during 2000 for its Hamaca heavy oil field in Venezuela. Without the Arco Alaska acquisition and the Hamaca reserves booking, Phillips' 2000 production replacement would have been 152 percent.

From 1996 through 2000, Phillips' five-year average production replacement equaled 376 percent, while preliminary finding-and-development costs averaged $3.24 per BOE.

"With the acquisition of our Alaskan assets, we doubled our reserves in a single stroke," said Dodd DeCamp, senior vice president of worldwide exploration. "Looking forward, we have committed 8 percent of Phillips' 2001 capital budget to worldwide exploration activities. We believe our drilling program for 2001, including promising plays in the Atlantic Margin and Kazakhstan, as well as additional exploration prospects in China's Bohai Bay, can yield additional long-life reserves."

Septic installer training offered

The Mining and Petroleum Training Service offers certified installer training, a state requirement for installers of conventional on-site septic systems, March 8 from 8 a.m. to 5 p.m. at the MAPTS Life Safety Institute on Marathon Road in Kenai. The class costs $65, and preregistration is required. Those who complete the class and pass the examination must pay $625 for a two-year certification.

To preregister or for information, call MAPTS at 262-2788 or the Alaska Department of Environmental Conservation at 262-5210.

Digital mandate brings big costs

Public television station KAKM Channel 7 says it will pay $6 million to meet a federal mandate that all television stations convert to digital signals within the next few years or lose their licenses to operate.

"We expect to raise at least half of that money locally and the rest from state and federal grants and private foundations," said Marc Langland, president, chair and chief executive of Northrim Bank and co-chair of a KAKM fund-raising campaign.

Alyeska Pipeline Service Co., Lynden Transport Inc., Ribelin, Lowell & Co., BP Alaska, Lowell and Tay Thomas, Cook Inlet Region Inc. National Bank of Alaska, Northrim Bank, the Anchorage Daily News, Totem Ocean Trailer Express, PIP Printing, Bradley Reid Communications and Shimek's Car Audio already have made major donations to the KAKM fund-raising campaign.

Commercial stations must convert by May 2002, and public stations by 2003. KAKM also must continue to broadcast an analog signal until 2006 or until 85 percent of Southcentral Alaska households have digital television sets. That will boost operating costs.

KAKM cut the estimated conversion cost to $6 million through a tower-sharing agreement with Anchorage commercial stations that saves each participating station several million dollars.

Burden heads Tesoro Alaska

Tesoro Petroleum Corp. has named Gene Burden president of its subsidiary, Tesoro Alaska Co., which operates the Nikiski refinery and markets Tesoro products in Alaska. Burden was previously Tesoro senior vice president for government relations. Earlier, he worked 11 years for Tesoro Alaska.

BP to build Anchorage community center

BP Exploration (Alaska) Inc. will build a $7.1 million community center to support nonprofit agencies throughout Alaska and promote understanding of Alaska's oil and gas industry.

The new 12,000-square-foot BP Energy Center, south of BP's Anchorage headquarters, will have training and meeting facilities for nonprofits and displays about oil and gas technologies. BP plans to break ground this spring. The center is scheduled to open in mid-2002.

Learn computerized accounting skills

The Kenai Small Business Development Center offers a hands-on seminar on Quick Books computerized accounting software Friday from 6 p.m. to 9 p.m. and Saturday from 1 p.m. to 4 p.m. at the New Frontier Vocational Technical Center in Soldotna. The cost is $100. To register, call Lou at 262-7497 or Dan at 262-9055.

Cross Timbers enjoys strong profits

Cross Timbers Oil Co. announced fourth-quarter 2000 net income of $50.2 million, up from net income of $6.1 million in the fourth quarter of 1999. Earnings available to common stock were $49.8 million, up from $5.6 million in the fourth quarter of 1999.

Fourth-quarter gas production averaged a record 366 million cubic feet per day, up 10 percent from the fourth quarter of 1999. Fourth-quarter oil production averaged 12,852 barrels per day, down 3 percent from the fourth quarter of 1999, mainly due to property sales.

The average fourth-quarter gas price was $4.56 per thousand cubic feet, nearly double the average in the fourth quarter of 1999. The average fourth-quarter oil price was $29.63 per barrel, up 28 percent from the fourth-quarter 1999 average.

"Our fourth-quarter results exceeded all expectations," said Bob R. Simpson, chairman and chief executive. "Once again, exceptional internal production growth and strong commodity prices produced a record quarter. Fourth-quarter cash flow topped cash flow for all of 1999, a previous company record."

Year 2000 net income was $117 million, up from $46.7 million in 1999. Year 2000 earnings available to common stock were $115.2 million, up from $45 million in 1999.

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