Gobbled

Tulsa oilman Randy Foutch, who created two Midcontinent-focused exploration and production (E&P) companies that were gobbled up by larger independents, has launched Laredo Petroleum with the backing of long-time financial partner Warburg Pincus.

San Jose’s Calpine Corp. has gobbled up the development rightsto build, own and operate a 540 MW natural gas-fired electricitygenerating facility in the energy-hungry Midwest. During periods ofhigh demand, the new Fremont Energy Center in Ohio, which isscheduled to go online in mid-2003, could generate more than 700MW.

A big fish gobbled up yet another small fish in the Northeastlast week as Southern Union Co. (SU), the spurned suitor ofSouthwest Gas, announced it agreed to purchase Providence Energy(ProvEnergy) for a total transaction value of $400 million. Thedeal, which SU expects to close in nine to 12 months, representsSU’s third Northeast utility purchase this year. If all these dealsare completed, Southern Union will serve 1.5 million customers inRhode Island, Massachusetts, Pennsylvania, Texas, Missouri andFlorida.

A big fish gobbled up yet another small fish in the Northeastyesterday as Southern Union Co. (SU), the spurned suitor ofSouthwest Gas, announced it has agreed to purchase ProvidenceEnergy (ProvEnergy) for a total transaction value of $400 million.The deal, which SU expects to close in nine to 12 months,represents SU’s third Northeast utility purchase this year. If allthese deals are completed, Southern Union will serve 1.5 millioncustomers in Rhode Island, Massachusetts, Pennsylvania, Texas,Missouri and Florida.