Wasatch Energy LLC of Salt Lake City said it has agreed to sell to BP Energy Co. all of its natural gas business and assets, including its commercial and industrial sales contracts and producer services contracts. The acquisition by BP is expected to close in early 2007, subject to regulatory approval.
BP is the top North American gas marketer, based on volume, according to NGI's marketer ranking.
Wasatch Energy's portfolio includes 350,000 MMBtu/d of gas purchase, transportation and sales activity across 10 western states serving approximately 500 commercial and industrial customers and 100 producers. The majority of its 42 employees live in Salt Lake City and a small number work from satellite offices throughout its operating area.
"We have a strong team of professionals who have built a portfolio from wellhead to burner tip that is poised for growth in this region," said Wasatch President Mark Smoot. "We are excited by the opportunity to become part of BP's North American gas and power business where we can further expand our product offering to our customers."
"The Wasatch team has been successful in managing the business requirements for a significant portfolio of core customers, while developing an excellent reputation for how they provide this service," said Orlando Alvarez, BP senior vice president for the western U.S. gas marketing group. "Bringing Wasatch into BP's organization will help us grow the producer services effort in the West, as well as provide a platform from which to continue growing the commercial and industrial business in the region."
Wasatch Energy is a fully integrated energy marketing and trading company with sales offices in New Mexico, Colorado, Washington, and California. Wasatch was assisted by Wells Fargo Securities with this transaction.
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