GE Energy Financial Services and its joint venture partner Alinda Capital Partners LLC plan to sell their Colorado-based multi-state natural gas utility distribution operations, which they acquired from Kinder Morgan and others in 2007 (see Daily GPI, April 9, 2007).
Golden, CO-based SourceGas LLC serves about 425,000 customers in Colorado, Nebraska, Wyoming and Arkansas. More than 200,000 of the customers are in Colorado.
“The owners of SourceGas are exploring the potential stock sale of SourceGas Holdings Inc. and its affiliates, including SourceGas Distribution LLC, SourceGas Arkansas Inc., and Rocky Mountain Natural Gas LLC," a Colorado-based spokesperson said. "SourceGas Distribution and SourceGas Arkansas are regulated natural gas distribution and transmission companies serving the four states.”
In 2006-2007 the purchase of the units now making up SourceGas was GE Energy's first plunge into a retail gas distribution business, and the company said at the time it was looking to expand its gas assets. At the time, the GE unit also had investments in 7,700 miles of North American interstate gas pipelines.
Back then, CEO Alex Urquhart said the former KMI assets would provide "an excellent platform" for GE Energy to grow its investment in the retail gas distribution sector.
Expected to fetch about $1.5 billion, the assets up for potential sale include more than 18,000 miles of distribution, gathering and transmission pipelines. GE Energy Financial and later Alinda acquired the units now making up SourceGas for nearly $1 billion in 2007.