Progress Energy Sells Natural Gas Assets To Texas- Based EXCO Resourcesadmin
Progress Energy , an integrated energy company, announced that it has sold Winchester Energy and its associated natural gas businesses to a wholly owned subsidiary of Texas- based EXCO Resources Inc. for about $1.16 billion.
The company has announced in July that net proceeds from the sale will be used to reduce debt.
The sale includes Progress Energy’s holdings in Winchester Production company, Westchester Gas company, Texas Gas Gathering and Talco Midstream Assets. Specific assets include more than 325 Bcfe of proved natural gas reserves, more than 500 producing wells and more than 350 miles of pipelines and gathering lines and other related assets, all located in east Texas and Louisiana.
Bob McGehee, chairman and CEO of Progress Energy said, “Completing this transaction is a significant step toward accomplishing our goal of reducing debt at the holding company level by $1.3 billion by the end of 2007″.
PGN is currently trading at $45.92, up $0.54 or 1.19%.