Montana Power Completes Sale of Oil and Gas Business to PanCanadian Petroleum Limited

Strategic Insights -

Montana Power Company has successfully sold its oil and gas business to PanCanadian Petroleum Limited for $475 million, marking the first of four energy businesses to be sold by the company. This move is part of the company's strategy to focus on its telecommunications subsidiary, Touch America, and invest in fiber-optic and wireless voice, data, and video transport. The sale includes companies in the United States and Canada that operate in oil, natural gas, and gas liquids exploration, production, and marketing.

Key Takeaways:

  • Montana Power Company has sold its oil and gas business to PanCanadian Petroleum Limited for $475 million, marking the first of four energy businesses to be sold.
  • The sale includes companies in the United States and Canada that operate in oil, natural gas, and gas liquids exploration, production, and marketing.
  • The transaction closed on schedule, nine weeks after the initial announcement.
  • Montana Power will receive $1.3 billion in gross proceeds to invest in Touch America, its telecommunications subsidiary.
  • Touch America's revenues increased to $122 million for the third quarter ended September 30.
  • The company has a workforce of approximately 550 employees, including 322 sales and sales support staff in 19 states.
  • PanCanadian will incorporate most of the acquired U.S. and Canadian properties into a new business unit, which will be headquartered in Calgary.
  • The business unit will have regional offices in Butte, Montana, and Denver, Colorado.

Statistics:

  • $475 million: The sale price of Montana Power's oil and gas business to PanCanadian Petroleum Limited.
  • $1.3 billion: The gross proceeds Montana Power will receive from the sale of its energy businesses.
  • $122 million: Touch America's revenues for the third quarter ended September 30.
  • 550: The approximate number of employees in Touch America.
  • 322: The number of sales and sales support staff in 19 states.
  • 19: The number of states with Touch America sales and sales support staff.
  • $475 million: The sale price represents 36.5% of Montana Power's total sales announced (including all four energy businesses).

Sources:

  • PRNewswire, "Montana Power Company Closes Sale of Oil and Gas Business to PanCanadian Petroleum Limited" (October 31).