Constellation Energy Group Inc. (CEG) said it will buy two
natural gas-fired generators from Houston-based Navasota Holdings
for $365 million.
The power producer and utility company said it will buy the
Colorado Bend and Quail Run energy centers--both 550-megawatt
facilities in Texas--as part of its plan to spend $1 billion in the
next two years to acquire assets in regions where Constellation's
infrastructure is stretched thin.
"These modern, well-managed natural gas assets represent an
important addition to our generation portfolio and are an ideal fit
to support our expanding commercial businesses in Texas," said
Chairman and Chief Executive Mayo A. Shattuck III.
Shattuck also that matching generation and load-serving
businesses in competitive markets "should drive greater
efficiencies in capital requirements, realized earnings and cash
flow."
Constellation had previously expressed interest in buying plants
in Texas and the Northeast, and Shattuck had said natural gas-fired
plants were likely a good fit for the company.
The deal is expected to close this quarter.
Baltimore-based Constellation in February said it swung to a
fourth-quarter profit on big gains as it recently sold nearly half
of its nuclear business.
Shares closed at $38.47 on Thursday and were inactive premarket.
The stock has risen 67% in the past year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com;