 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
Constellation Energy to Explore Sale of Gas-Fired Generation Plants
Baltimore MD (SPX)Jun 20, 2006 Constellation Energy has announced that it has engaged advisors to explore the sale of 3,145 MW natural gas-fired generating plants. The generating assets include the company's High Desert, Rio Nogales, Holland, University Park, Big Sandy and Wolf Hills plants. These merchant assets are located in California, Texas, Illinois, West Virginia and Virginia, respectively. Of these assets, the High Desert plant in Victorville, Calif. currently has a tolling contract with the California Department of Water Resources that expires in 2011. "Physical assets have been and will continue to be at the core of our overall business strategy," said Mayo A. Shattuck III, chairman, president and chief executive officer of Constellation Energy. "However, in the current market environment our gas-fired assets offer fewer synergies to our competitive supply portfolios, than our base load coal and nuclear assets. "Our employees have been able to optimize the performance of these assets, and with gas-fired assets trading at attractive values and a limited supply of plants of this caliber available for sale, we believe it to be an appropriate time for Constellation Energy to consider the divestiture of these assets," Shattuck said. "We have a broad array of investment opportunities available and if an attractive value can be realized from this effort, we would look to redeploy this capital in investments more closely aligned with our strategy." Constellation Energy believes this effort in the aggregate will enhance capital returns. Consistent with the company's prior practice, proceeds will be applied to debt reduction. Based on the company's estimate of the market value of the plants, Constellation Energy should be at its target leverage ratios upon completion of the divestiture. After the sale is complete, 2007 free cash flow would then be fully available for reinvestment in the business or for the repurchase of shares. In total, we expect the sale of plants, earlier attainment of targeted leverage levels, and availability to begin to fully reinvest free cash flow in the business, to be modestly dilutive in 2007 and accretive in 2008. If market conditions remain favorable, the company expects the transaction to be concluded in 2006. Community Email This Article Comment On This Article Related Links Constellation Energy Powering The World in the 21st Century at Energy-Daily.com
Looming Energy Crisis Requires New Manhattan Project
Los Angeles (AFP) Jun 19, 2006The United States urgently needs an effort similar to the Manhattan Project or NASA's moon mission to confront a looming energy crisis, scientists said at a high-level energy conference here. |
|
|
| The content herein, unless otherwise known to be public domain, are Copyright 1995-2006 - SpaceDaily.AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA PortalReports are copyright European Space Agency. All NASA sourced material is public domain. Additionalcopyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement |
