Posted on 06/29/2005 6:01:08 AM PDT by MeneMeneTekelUpharsin
NEW YORK (MarketWatch) - Calpine Corp. said Wednesday it would sell all its remaining oil and gas properties to an indirect subsidiary for about $1.05 billion. Under the terms of the deal Rosetta Resources Inc., wholly owned by Calpine, will issue 45.3 million shares worth $725 million in a private placement. The proceeds, together with a $325 million in a new credit facility, will be used to buys all of Calpine's domestic oil and gas exploration and production assets.
Shares of San Jose, Calif.-based Calpine (CPN: news, chart, profile) rose 5.83% in pre-opening trade Wednesday to $3.81. Calpine said the sale should close July 7. Merchant power company Calpine said that as of May 1, 2005, its proved oil and gas reserves totaled about 383 billion cubic feet equivalent. In late May, Calpine said it would accelerate efforts to slice $3 billion from its debt load. Calpine said at the time that the plan includes selling up to eight power plants. See archived story.
1. Sell Saltend -- Done.
2. Sell Oil & Gas reserves -- Done.
3. Sell Plants -- Negotiations underway.
Seems to be going in the direction it needs to go.
Here's some more info on the saga of Calpine. It's been a trip, to say the least.
Thanks for the post.
I didn't know Calpine owned Rosetta Resources. I thought Rosetta was an offshoot of HEYCO.
I try to be informative, not just hype.
That makes two of us. These corporations have complex structures.
I have mixed feelings about this. It's a great time to sell oil and gas properties, but it's also a lousy time to get out of the oil and gas business.
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