NGI The Weekly Gas Market Report / NGI All News Access

TransMontaigne Sells Bear Paw Energy

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 logistical services.

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 MMcf/d.

©Copyright 2000 Intelligence Press, Inc. All rights reserved. The preceding news report may not be republished or redistributed in whole or in part without prior written consent of Intelligence Press, Inc.

ISSN © 2577-9877 | ISSN © 1532-1266
Comments powered by Disqus