NorthWestern Energy Completes Purchase of Natural Gas Assets in Montana
BUTTE, Mont., Dec. 2, 2013 /PRNewswire/ -- NorthWestern Corporation d/b/a NorthWestern Energy (NYSE: NWE) has completed the $70.2 million purchase (subject to customary post-closing adjustments) of operating and nonoperating natural gas production interests in northern Montana's Bear Paw Basin from Devon Energy Production Company, L.P. (Devon). This purchase also includes Devon's 82 percent interest in the Havre Pipeline Company, LLC.
"We're pleased to have secured another gas production asset in Montana that will help provide long-term supply price stability and reliability for our customers," said Bob Rowe, CEO. "We're also pleased to welcome the newest members of the team to the NorthWestern Energy family. We look forward to getting to know them as co-workers in the Havre area." Twenty-nine former Devon employees accepted positions with NorthWestern Energy bringing the company's total Havre-area workforce to approximately 70 employees.
NorthWestern Energy purchased Devon's interests in about 900 wells that will produce approximately 5.6 Bcf in 2013. The facilities have 63 Bcf of net gas reserve and exist in the Bear Paw fields near NorthWestern's other natural gas production assets. Devon's interest also includes an 82 percent ownership in a limited liability company that owns and operates the Havre Pipeline consisting of 82 miles of transmission lines, 576 miles of gas gathering lines, and 21 compressors in Blaine, Chouteau and Hill Counties.
Estimating a 20 Bcf annual natural gas usage of NorthWestern's core customers, the 5.6 Bcf of 2013 production from the Devon transaction would represent about 28 percent of the supply portfolio. Including the Battle Creek, existing Bear Paw assets and the Devon transaction, NorthWestern production would supply 37 percent of the core customer needs.
NorthWestern Energy currently owns gas production interests in the Battle Creek Field and the Bear Paw Basin which extends from the Missouri River North to the Canadian Border. Pipeline assets associated with the gas production include Havre Pipeline, Bear Paw, Willow Creek, Lodge Creek and Battle Creek gathering systems, all located in north-central Montana.
About NorthWestern Energy (NYSE: NWE)
NorthWestern Energy provides electricity and natural gas in the Upper Midwest and Northwest, serving approximately 673,200 customers in Montana, South Dakota and Nebraska. More information on NorthWestern Energy is available on the company's website at www.northwesternenergy.com.
SOURCE NorthWestern Corporation