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Baker Hughes Announces Organizational Changes
Posted: 25 July 2005
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Houston, Falcon Gas Storage Company, Inc. announced that GAStorage Investment LLC, a company organized by Arcapita, a global investment group, has acquired the majority equity interest in Falcon and has injected additional capital to complete the expansion of the company's existing gas storage facilities and advance the development of its gas storage projects.
Current Falcon management will remain in place and continue to retain a
material equity ownership in the company. The total value of the initial
transaction is approximately $100 million. Dresdner Kleinwort Wasserstein
Securities LLC advised Arcapita on the transaction. Simmons & Company
International advised Falcon on the transaction.
"Our new partners will provide Falcon with the capital necessary to
complete the Phase II and III expansions of our Hill-Lake Gas Storage
Facility, as well as the Phase I and II expansions of our Worsham-Steed Gas
Storage Facility," said John M. Hopper, Falcon's president and CEO. "In
addition, we have earmarked part of our new investment capital for the
development of our MoBay Storage Hub in southwestern Alabama , which will
serve markets in Florida and the southeast.
"Arcapita brings to Falcon not only substantial capital investment
capacity, but also a wealth of experience in both domestic and
international private equity investments," he added. "We are very grateful
to our original equity partner, Energy Spectrum, for their investment in
Falcon over the last five years, and we are excited and fortunate to have
Arcapita on board as our new partner."
Together, the Hill-Lake and Worsham-Steed facilities have more than 20 Bcf
of high-deliverability, multi-cycle (HDMC) working gas storage capacity
and, with the new expansions, will have up to 1 Bcfd of aggregate maximum
injection and withdrawal capacity to serve the Dallas-Ft. Worth and north
Texas markets, including the rapidly expanding Barnett Shale gas play.
"We are delighted to make our first investment in the growing US gas sector
with a solid management team," an Arcapita representative commented.
Posted by Editor Pipeline Magazine
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