Dominion said Thursday that it has completed the acquisition of Louis Dreyfus Natural Gas Corp. (see Daily GPI, Sept. 11). “We’re very pleased with the quick pace of this transaction. It reflects the strong strategic fit and economic common sense this acquisition represents for Dominion,” said Thos. E. Capps, CEO. “We expect to integrate Louis Dreyfus Natural Gas operations quickly into our own exploration and production business and begin putting these assets to work for Dominion’s bottom line.” The closure follows Dominion’s announcement in September that it would acquire Louis Dreyfus for $2.3 billion in cash, stock and assumed debt. The company said the acquisition increases its proved reserves by more than 60%, to more than 4.6 Tcfe, and increases its production by more than 40%, to more than 450 Bcf annually. The addition of Louis Dreyfus also expands Dominion’s growing energy trading business. Dominion said the acquisition boosts its daily energy production capability to more than 3 trillion Btus. Over the next three years, the company said it expects the acquisition to help double its energy trading and sales volumes over 2000 levels. The company expects gas trading volumes to increase from 1.2 Tcf to 2.4 Tcf annually and electricity trading volumes to increase from 136 million MWh to 265 million MWh annually. Dominion reported that as part of the acquisition, Consolidated Natural Gas Co. (CNG), a subsidiary of Dominion, will guarantee the existing public debt of Louis Dreyfus Natural Gas. CNG’s senior unsecured debt is rated BBB+ by Standard & Poor’s and A3 by Moody’s.

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