Associated Natural Gas Corporation Acquires Wattenberg Gas System from Snyder Oil Corporation

Associated Natural Gas Corporation, a subsidiary of Panhandle Eastern Corporation, has signed a letter of intent to purchase the remaining Wattenberg gas system in Weld County, Colorado, from Snyder Oil Corporation for $63.5 million. The facilities, including a gas processing plant and 900 miles of pipeline and related compressors, are expected to expand the company's gathering and processing segment. Associated Natural Gas Corporation is confident in its ability to integrate the new facilities due to its significant experience in the Wattenberg area and its good working relationship with producers.

Key Takeaways:

• Associated Natural Gas Corporation has signed a letter of intent to acquire the remaining Wattenberg gas system in Weld County, Colorado, from Snyder Oil Corporation for $63.5 million.
• The facilities include a gas processing plant and approximately 900 miles of pipeline and related compressors.
• The acquisition is expected to continue the company's strategy of expanding its gathering and processing segment.
• Associated Natural Gas Corporation has significant experience in the Wattenberg area and enjoys a good working relationship with producers in this growing area.
• The company has a proven track record in acquiring and integrating gas systems, with a strong presence in the Wattenberg area.
• The acquisition is subject to final due diligence, preparation of definitive agreements, and Hart-Scott-Rodino review.
• Associated Natural Gas Corporation is a subsidiary of Panhandle Eastern Corporation, a leading marketer of natural gas and related energy services.

Statistics:

• $63.5 million: the purchase price of the Wattenberg gas system.
• 900 miles: the length of pipeline and related compressors included in the facilities.
• Weld County, Colorado: the location of the Wattenberg gas system.
• 20 years: the operating experience of Associated Natural Gas Corporation in the Wattenberg area.

Sources:

Associate Natural Gas Corporation

"Associated Natural Gas Corporation Continues Growth Strategy; Announces Agreement to Acquire Wattenberg Gas System"

Panhandle Eastern Corporation

Annual Report (1995)

Snyder Oil Corporation

Company Profile (1995)