Hadson Petroleum Buys 4 Firms for $45 Million / Will Open California Natural Gas Market
L. D. Barney, THE JOURNAL RECORD
The purchase includes a 594-mile intrastate southeastern New Mexico pipeline system. It will allow Hadson to sell natural gas into the California market, the largest natural gas market in the nation, said Stephen Houghton, president of Hadson.
The New Mexico pipeline system currently sells about 50 million cubic feet of gas per day to California.
Hadson agreed with Houston Natural Gas Corp., a wholly-owned subsidiary of HNG/Internorth, to purchase all the common stock of four other subsidiaries, called the Llano Group, for "in excess of $40 million," said Houghton.
HNG/Internorth said the sale proceeds will be about $45 million.
"We are pleased about the prospects of having the Llano Group of companies and their employees become a part of Hadson," said Houghton. "This acquisition will be of significant strategic importanceto Hadson and its future business plans for entering the California gas market.
"We felt that Llano is uniquely situated to serve the southern California market more competitively than the Canadians, because it is nearer."
The four Llano Group subsidiaries have combined revenues of more than $70 million a year, said Houghton. They include:
- Llano Inc.
- Llano CO2 Inc.
- Minerals Inc.
- Nmesco Fuels.
Llano Inc. owns and operates the New Mexico pipeline system, which has a capacity of carrying 140 million cubic feet per day of natural gas.
The systems sells natural gas into the California market through interconnects with lines operated by El Paso Natural Gas Co. and Transwestern Pipeline Co., Houghton said. The Llano system also connects with Northern Natural Gas Co. and United Gas Pipeline Co.
Total "throughput" of the New Mexico line is about 80 million cubic feet a day at the present time, he said.
Through its subsidiary, Hadson Gas Systems Inc., Hadson Petroleum Corp. …