TECO Energy and Continental Energy to Purchase New Mexico Gas
In an announcement, TECO Energy Inc had said it had entered into a stock purchase agreement with Continental Energy Systems LLC and its unit, New Mexico Gas Intermediate Inc. The partnership would be purchasing New Mexico Gas Company for an aggregate value of about US$950 million.
Included in the agreement would be the assumption of the outstanding debt of New Mexico Gas Co. This agreement though is still subject to the customary closing adjustements.
The agreement would have TECO Energy acquiring New Mexico Gas Intermediate Inc. As the new owner of New Mexico Gas Co, TECO Energy would be expecting the transaction, to be accretive in nature, to be added on to the earnings in its first full year after closing the agreement in 2015.
The customer base of New Mexico Gas Co is pegged ar around 509,000, primarily residences located all over New Mexico, When the transaction has been closed, TECO Energy subsidiaries would be serving more than 1.5 million regulated electric and gas utility customers in both New Mexico and Florida.