Calpine Corp. on Thursday completed the sale of all of its domestic oil and natural gas exploration and production assets for $1.05 billion, less $60 million of estimated fees, to Rosetta Resources Inc., a former indirect subsidiary. With the completion of the sale, Calpine expects to record a gain of about $350 million.
The newly formed Rosetta recently raised $725 million by issuing 45 million of its common shares. Rosetta used the net proceeds from that transaction, together with $325 million of proceeds from a new credit facility, to purchase all of Calpine's domestic production assets. With the completion of this transaction, Calpine no longer owns any interest in Rosetta.
Rosetta, a new producer headquartered in Houston, will concentrate its operations in the Sacramento Basin of California, South Texas, the Gulf of Mexico and the Rocky Mountains.
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