TransMontaigne Sells Bear Paw Energy
Denver-based TransMontaigne Inc. agreed to sell gas gathering
subsidiary Bear Paw Energy Inc. to a group formed by Bear Paw
management along with two other partners for $107.5 million in cash
and reimbursement of costs for a Powder River gathering system.
The group, BPE Acquisition LLC, was formed by Bear Paw
management, Thomas J. Edelman and Chase Capital Partners.
TransMontaigne will be reimbursed for all capital expenditures it
made on Bear Paw's newly constructed Powder River coal seam
gathering system from July 1 to Dec. 31. The deal, effective Dec.
31, is expected to close mid-January, subject to regulatory
approvals. Net proceeds to TransMontaigne are expected to be $130
million and will mainly cut debt. The gain will mitigate hedging
losses in TransMontaigne's core business of petroleum products
TransMontaigne subsidiaries provide logistical petroleum
services including terminaling and storage services and
distribution and marketing of refined petroleum products.
Subsidiaries also are engaged in gathering, treating, processing,
fractionating and marketing natural gas liquids and natural gas.
The company mainly operates in the Midcontinent, Gulf Coast,
Southeast, Mid-Atlantic, Northeast and Rocky Mountain regions. Gas
services assets mainly consist of five gathering and processing
systems in four states with combined throughput of about 106
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