Integrys Sells Oil & Natural Gas Production Subsidiary to El Paso
Integrys Energy has reached a definitive agreement to sell its oil and natural gas production subsidiary, based in Houston, TX, to a subsidiary of El Paso Corporation (NYSE: EP). Integrys had previously announced its intention to sell the production company before the end of 2007.
The Board of Directors of the respective companies have approved the transaction, which is subject to normal and customary conditions to closing, including buyer’s completion of title and environmental due diligence. The parties expect to close the sale on or about September 30, 2007.
The gross purchase price is approximately $875 million.
"This transaction is consistent with our asset management strategy to sell non-core assets that we expect will lower our business risk profile," said Steven P. Eschbach, Integrys Energy Group’s Vice President – Investor Relations. "We expect the net after-tax proceeds of about $600 million to $650 million will be used to significantly reduce our short-term debt and strengthen our balance sheet."
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Company: Integrys Energy Group, Inc. more info
- Integrys Sells Oil & Natural Gas Production Subsidiary to El Paso (Aug 17)