SourceGas Announces Approval and Completion of First Strategic Acquisition, Arkansas Western Gas; Customers to Receive Bill Credit
LAKEWOOD, Colo.--(Business Wire)--
SourceGas LLC announced today the completion of its first
strategic acquisition, Arkansas Western Gas. The Arkansas Public
Service Commission issued an Order yesterday approving the purchase of
Arkansas Western Gas Company (AWG), from Southwestern Energy Company
(NYSE: SWN). SourceGas and SWN closed the sale effective today July 1,
2008.
This acquisition reinforces the strategy of SourceGas' owners, GE
Energy Financial Services and Alinda Investments, to expand their
natural gas utility footprint.
Upon closing, SWN will pay $9.8 million to AWG. AWG, in turn, is
refunding the entire $9.8 million to its customers by providing a
credit to an upcoming gas bill. The amount of credit customers receive
is based upon the amount of gas used during the refund month and will
be shown on the bill as a "Transition Credit Adjustment". For some
customers, the credit will offset the entire month's bill and may even
result in a credit balance that will be carried forward to help offset
a part of the following month's bill. The typical residential customer
using 13 Ccf during the refund month can expect to receive a credit of
approximately $46.00.
Dan Watson, President and CEO of SourceGas, will also become the
President of AWG. "We expect the acquisition and ensuing transition to
be seamless to customers, who will continue to receive great service
from the experienced team of employees serving them today with the
added benefits of the SourceGas system," said Watson. "AWG customers
will also see the SourceGas name added in such places as the monthly
billing statements, marketing brochures and website over the next few
months," added Watson.
"AWG has a long history of providing quality natural gas service
in Arkansas for over 75 years. We are pleased to be able to add such a
company, and we look forward to continuing this long-standing
tradition," said Watson.
SourceGas is a natural gas local distribution utility
headquartered in Lakewood, Colorado, with operations in Colorado,
Nebraska, Wyoming and Hermosillo, Mexico and now in Arkansas. AWG is a
natural gas local distribution company serving 152,000 customers in
northern Arkansas. With the addition of AWG, SourceGas serves nearly
420,000 customers and operates 17,700 miles of distribution, gathering
and transmission pipeline, as well as storage facilities.
GE Energy Financial Services and Alinda Investments LLC are the
owners of SourceGas. With $19 billion in assets, GE Energy Financial
Services invests more than $5 billion annually in two of the world's
most capital-intensive industries, energy and water. Alinda
Infrastructure Fund ("Alinda") is a leading independent infrastructure
fund with $3 billion of capital commitments. Alinda invests in
infrastructure assets which provide essential services to communities,
governments and businesses. To date, Alinda has made investments in a
wide range of infrastructure assets in North America and Europe,
including gas utilities, water, roads, airports, rail, and water
tanks.
SourceGas
Len Mize, 303-243-3430
Media Relations
or
AWG
Rick Gunter, 479-582-8482
VP, Rates & Regulation
Copyright Business Wire 2008
