星期一, 1月 18, 2021
Home PV News South America Constellation NewEnergy Gas Division to Acquire Cornerstone Energy, Inc.

Constellation NewEnergy Gas Division to Acquire Cornerstone Energy, Inc.

Constellation Energy (NYSE: CEG – News) announced today that its subsidiary, Constellation NewEnergy — Gas Division (CNE Gas), has signed an agreement to acquire Cornerstone Energy, Inc. The acquisition will further position CNE Gas as a significant gas supplier to commercial, industrial and institutional customers in North America. The acquisition will increase the scale of CNE Gas by 29 percent in terms of volume, expand its geographic footprint and its leadership in new and existing markets.
 
Headquartered in Omaha, Neb., the privately held Cornerstone Energy is one of the nation's largest non-utility affiliated natural gas marketing companies. It provides natural gas supply and financial hedging services to more than 1,400 commercial, industrial and institutional customers across the Mid-Continent United States. It also provides natural gas and related services to more than 8,500 small commercial businesses.


"Growing the scale of Constellation NewEnergy's Gas Division will allow us to increase efficiency and broaden the set of products and services we supply to customers," said Thomas F. Brady, executive vice president corporate strategy and retail competitive supply, Constellation Energy, parent of CNE Gas. "It also will provide us with an access point for the growing ethanol markets in the Corn Belt. From a strategic and market standpoint, it works on many levels."


"The addition of Cornerstone Energy will allow CNE Gas to continue our expansion in current and new markets, both in terms of geography and customer segment," said CNE Gas President and CEO Drew Fellon. "Through this acquisition we will increase our annual volume by 29 percent to approximately 457 billion cubic feet (Bcf) of natural gas deliveries to commercial, industrial and institutional customers across North America.


"Just as important as adding scale and new customers, we will obtain the expertise of the leadership and employees of Cornerstone Energy, who have created a significant market presence in the northern and Midwestern United States. CNE Gas will also benefit from Cornerstone Energy's success in serving small business customers — a growth opportunity for us."


"We're very pleased to be joining a company of the size and caliber of CNE Gas and its parent, Constellation Energy," said Cornerstone Energy President and CEO Bret Feller. "Our business increasingly is about growing scale and improving efficiency and the competitive platform in place at CNE Gas is one of the most capable and extensive in the industry. Joining the Constellation Energy team will allow us to provide more services to our customers and will create a new range of cross-selling opportunities."


The transaction is expected to close in May 2007, subject to standard closing conditions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Act.


It is anticipated that Cornerstone Energy's 42 employees, including its founders, will join CNE Gas. Upon closing, Cornerstone Energy will operate under the Constellation NewEnergy Gas Division brand from its base in Omaha, Neb., and report into the CNE Gas headquarters in Louisville, Ky.


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


Corporate Profiles


Cornerstone Energy, Inc. provides natural gas procurement and financial hedging services to more than 1,400 commercial, industrial and institutional customers across the Mid-Continent United States, as well as natural gas supply and related services to more than 8,500 small commercial businesses throughout the Mid-Continent United States. Cornerstone is one of the largest independent non-utility affiliated natural gas marketing companies that operates in the United States. Cornerstone considers its core markets to be within the states of Arkansas, Colorado, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota. The company delivers more than 100 Bcf of natural gas on an annual basis. Cornerstone maintains its corporate headquarters in Omaha, Neb.


Constellation NewEnergy Gas Division is a full-service provider of natural gas supply and transportation-related services. With headquarters in Louisville, Ky., Constellation NewEnergy Gas Division has sales offices across North America, serving more than 6,000 large commercial, industrial, and institutional facilities that annually consume more than 354 Bcf of natural gas. Constellation NewEnergy Gas Division is a division of Constellation Energy (NYSE: CEG – News) and a sister company to Constellation NewEnergy.


Constellation NewEnergy (www.newenergy.com) is a leading competitive supplier of electricity, natural gas and energy-related services to commercial and industrial customers throughout North America. Constellation NewEnergy operates in all competitive energy markets throughout Canada and the United States, providing products that enable customers to effectively manage and control energy costs. Constellation NewEnergy's regional expertise, coupled with its national presence, provides customers with customized energy products and services while leveraging the assets of one of the strongest integrated energy companies in North America. Constellation NewEnergy, based in Baltimore, serves more than 10,000 commercial and industrial customers throughout 36 states and 3 Canadian provinces representing more than 15,000 megawatts of peak load and more than 354 billion cubic feet of annual natural gas consumption.


Constellation Energy (www.constellation.com), a FORTUNE 200 company with 2006 revenues of $19.3 billion, is the nation's largest competitive supplier of electricity to large commercial and industrial customers and the nation's largest wholesale power seller. Constellation Energy also manages fuels and energy services on behalf of energy intensive industries and utilities. It owns a diversified fleet of 78 generating units located throughout the United States, totaling approximately 8,700 megawatts of generating capacity. The company delivers electricity and natural gas through the Baltimore Gas and Electric Company (BGE), its regulated utility in Central Maryland.


Constellation Energy: Forward-Looking Statements


We make statements in this news release that are considered forward- looking statements within the meaning of the Securities Exchange Act of 1934. These statements are not guarantees of our future performance and are subject to risks, uncertainties and other important factors that could cause our actual performance or achievements to be materially different from those we project. For a full discussion of these risks, uncertainties and factors, we encourage you to read our documents on file with the Securities and Exchange Commission, including those set forth in our periodic reports under the forward-looking statements and risk factors sections. Except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.


 

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