Sempra Generation Finalizes SEPCO Sale
Sempra Generation, a unit of Sempra Energy, has finalized the sale of its exploration and production subsidiary, Sempra Energy Production Co. (SEPCO), to PEC Minerals L.P. for approximately $225 million in cash. Sempra Energy expects to record an after-tax gain of approximately $110 million from the sale in the third quarter 2006 as part of discontinued operations.
PEC Minerals L.P. is owned by a group consisting of Jetta Operating Co., Trevor Rees-Jones, and Providence Energy Corp.
SEPCO's assets include ownership of mineral rights over 570,000 net acres and executive rights to more than 190,000 net acres in 31 states.
The cash proceeds from the sale will be used to help fund Sempra Energy's other capital projects, such as liquefied natural gas receipt terminals, new interstate natural gas transmission pipelines, and natural gas storage facilities.
In 1998, SEPCO's parent company, Pacific Enterprises, merged with Enova Corp. to form Sempra Energy. Since the merger, SEPCO has been operating as a subsidiary of Sempra Generation. SEPCO's offices are in Dallas.
Petrie Parkman & Co., a private energy investment-banking firm, acted as financial advisor to Sempra Energy in this transaction.
Sempra Generation is the Sempra Energy subsidiary that operates and maintains power plants for the competitive market. Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2005 revenues of $11.7 billion. The Sempra Energy companies' 14,000 employees serve more than 29 million consumers in the United States, Europe, Canada, Mexico, South America and Asia.
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Company: Providence Energy Corp. more info
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Company: PEC Minerals L.P. more info
- Sempra Generation Finalizes SEPCO Sale (Aug 01)