Cinergy Consolidates ProEnergy Purchase
Cinergy Corp. has moved to integrate its purchase of Producers
Energy Marketing, LLC (ProEnergy) with its own commodity marketing
operation, cutting some ProEnergy executives and planning the
integration of its smaller Houston office into the larger ProEnergy
facilities in Houston.
A Cinergy spokesman confirmed the company had cut five "upper
management" positions. NGI has learned from sources the personnel
cut included ProEnergy's president and two marketing vice
presidents, the supply vice president and the chief financial
officer. The spokesman would not confirm the titles nor supply
names. Questioned as to whether there would be other cuts, he said
only that the company was continuing an evaluation of the entire
organization. Another company spokesman said he knew of no specific
plans at this point.
Changes have been expected since Cinergy, based in Ohio and the
parent of Cincinnati Gas & Electric, purchased the ProEnergy
wholesale gas marketing firm last June, saying it would make a good
fit with Cinergy's wholesale electric marketing business. Cinergy
bought the firm from owners Oryx Energy and Apache Corp. for $42
million. It also signed a 10-year alliance with the producers to
market their entire gas supply of about 1.1 Bcf/d. The new trading
unit, Cinergy Capital and Trading, is headed by Madeleine W.
Ludlow, president, and Michael J. Cyrus, executive vice president.
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