By OGJ editors
HOUSTON, Aug. 17 -- El Paso Exploration & Production Co., a subsidiary of El Paso Corp., Houston, reported plans to acquire Peoples Energy Production Co. for $875 million.
Peoples, which is a unit of Integrys Energy Group, owns an estimated 305 bcf of gas equivalent of proved reserves and owns 72 MMcfd of production.
The assets involve properties in Arkansas, Louisiana, Texas, and Mississippi. El Paso expects to close the transaction in the third quarter.
El Paso said it will finance much of the acquisition with proceeds from its previously announced divestiture program covering 220-270 bcf, or 10% of total reserves. Integrys said the sale fit into its strategy to sell noncore assets.
