Constellation Energy subsidiary Constellation NewEnergy Gas Division (CNE Gas) has completed the acquisition of Cornerstone Energy Inc., creating one of the nation’s largest natural gas marketing companies.

CNE Gas increased its annual volume by 29% to more than 450 Bcf of natural gas deliveries, expanded its geographic footprint in the northern and Midwestern United States and broadened its leadership in new and existing markets such as growing ethanol markets, the company said.

The deal was announced in March (see NGI, March 26). In the first quarter of 2007 Constellation ranked sixth on NGI‘s quarterly ranking of top natural gas marketers (https://intelligencepress.com/features/rankings/gas/) at 8.2 Bcf/d, a 37% volume increase from the year-ago period.

“Integration activities have gone well and today we are in an excellent position to leverage our new size, talent and capabilities across new and existing markets,” said CNE Gas President Andrew Fellon. “This expansion provides CNE Gas with an immediate and powerful presence in northern and Midwestern states and broadens our growing customer base from large to mid-size commercial, industrial and institutional users to thousands of smaller business customers.”

Privately held Cornerstone, which is based in Omaha, NE, was founded by former executives of Aquila Inc. It was one of the country’s largest nonutility affiliated gas marketers, providing supply and financial hedging services to more than 1,400 commercial, industrial and institutional customers across the Midcontinent United States. Cornerstone also provided gas and related services to more than 8,500 small commercial businesses. Core markets that were served by Cornerstone are in Arkansas, Colorado, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota. Cornerstone on its own delivered more than 120 Bcf annually and served customers behind 15 local distribution companies.

Cornerstone’s 42 employees, including its founders, now join CNE Gas, operating under the Constellation NewEnergy Gas Division brand from its base in Omaha, NE, and reporting to CNE Gas headquarters in Louisville, KY.

Constellation Energy said it expects the transaction to be neutral to 2007 earnings and modestly accretive in 2008.

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