Calgary, AB - Direct Energy, one of North America's leading integrated energy and services companies, and a subsidiary of Centrica plc, has completed its acquisition of Suncor Energy's (TSX: SU, NYSE: SU) Wildcat Hills natural gas assets for $367.5 million*.
"Our initial impression of the strength of the Wildcat Hills assets, in terms of the expected natural gas production and dedicated staff, has been affirmed during the process of integrating it into our existing operations," said Badar Khan, President, Direct Energy Upstream & Trading.
With the acquisition, Direct Energy's total natural gas equivalent production increases by approximately 80 per cent to approximately 180 mmcfe/day (95 per cent gas).
"Direct Energy intends to continue investigating opportunities for upstream investments in natural gas, including shale, and power generation assets in North America. In today's low natural gas price environment, well-capitalized companies, like ours, are in a strong position to acquire value-producing assets which is consistent with our strategy for greater integration and growth," noted Mr. Khan.
The addition of the Wildcat Hills assets brings Direct Energy's upstream asset cover to approximately 35 per cent of the load required by its North American retail natural gas customers.
About Direct Energy
Direct Energy is one of North America's largest energy and energy-related services providers with over 6 million residential and commercial customer relationships. Direct Energy provides customers with choice and support in managing their energy costs through a portfolio of innovative products and services. A subsidiary of Centrica plc (LSE: CNA), one of the world's leading integrated energy companies, Direct Energy operates in 46 states plus DC and 10 provinces in Canada. To learn more about Direct Energy, please visit www.directenergy.com.
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* Direct Energy reduced the amount paid for the Wildcat Hills assets following one of Suncor Energy's partners exercising a pre-emption right.