PostRock Buys Additional CEP Interests
December 20 2011 - 9:15AM
PostRock Energy Corporation (Nasdaq:PSTR)
("PostRock") today announced that it had purchased all of
Constellation Energy Group, Inc.'s (NYSE:CEG) remaining Class B
Member interests in Constellation Energy Partners LLC (NYSE:CEP).
In the transaction, PostRock acquired 2,790,224 Class B Interests
for $6 million in cash. PostRock now owns all of CEP's Class A
Interests and 24.9% of its Class B Interests. In combination,
the Interests are believed to represent a 26.4% voting interest in
CEP.
PostRock and CEP both have the majority of their assets in the
Cherokee Basin of Kansas and Oklahoma. Since last spring,
PostRock has sought to work with CEP to explore opportunities to
reduce costs and enhance value for the companies' respective
investors.
Commenting on the announcement, Terry W. Carter, PostRock's
Chief Executive Officer, said, "Particularly in light of the
current depressed gas market, we believe that PostRock and CEP
should be aggressively pursuing joint operations and/or other ways
to enhance shareholder value. Unfortunately, our mutual
alternatives have been limited by the decisions of CEP's Board,
which set unacceptable conditions relating to the confidentiality
of any such discussions. Having now acquired more than a 15%
interest in CEP, our alternatives are somewhat limited by Delaware
statutes. Regardless, we will continue to try to work with CEP
and to urge adoption of a more pragmatic approach to exploring our
mutual opportunities."
PostRock Energy Corporation is engaged in the acquisition,
exploration, development, production and transportation of oil and
natural gas, primarily in the Cherokee Basin of Kansas and
Oklahoma. The Company owns and operates over 3,000 wells and nearly
2,200 miles of gas gathering lines in the Basin. It also owns a
1,120 mile interstate natural gas pipeline, which transports
natural gas from northern Oklahoma and western Kansas to Wichita
and Kansas City.
The PostRock Energy Corp. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=7221
CONTACT: North Whipple
Director, Finance & Investor Relations
(405) 702-7423
Constellation Energy (NYSE:CEG)
Historical Stock Chart
From Jun 2024 to Jul 2024
Constellation Energy (NYSE:CEG)
Historical Stock Chart
From Jul 2023 to Jul 2024