SERVICE SECTOR / Coast Energy Canada, Inc., Wholly Owned Subsidiary of Cornerstone Propane Partners, L. P., Purchases Canadian Gas Trading Assets
SUGAR LAND, Texas--(BUSINESS WIRE)--Jan. 6, 1999--Coast Energy Canada, Inc. (''Coast Energy Canada''), a wholly owned subsidiary of Cornerstone Propane Partners, L. P. (NYSE:CNO - news; ''Cornerstone'' or the ''Partnership''), announced today it has finalized the purchase of the gas trading assets of ERI Canada Ltd., effective December 31, 1998. Terms of the acquisition were not disclosed.
With this acquisition, Coast Energy Canada will have an established, full service natural gas trading and marketing company, headquartered in Calgary, Alberta. Expected annual revenues from this acquisition should exceed $400 million in US Dollars based on last year's performance. With this purchase, Coast Energy Canada expands its portfolio to now include natural gas from numerous producers and gathering companies within Canada and markets this natural gas in all of North America. Coast Energy Canada expects to market approximately 800,000 mmbtus per day and estimates annual pre-tax earnings from this asset of approximately $2.0 million.
''We are extremely pleased to have consummated this acquisition and to have the entire team from ERI Canada join Coast Energy Canada,'' said Vincent J. Di Cosimo, Coast Energy Canada, Inc.'s president and president and COO of Coast Energy Group (CEG). ''This additional presence in Canada, combined with CEG's significant market and distribution in the U. S. substantially increases our ability to better service our customers across America. Also, we are confident these earnings will have an accretive effect on the Partnership's earnings.''
Cornerstone Propane Partners, L. P. is a master limited partnership. The Partnership believes it is the nation's fifth largest retail propane marketer serving over 440,000 customers with sales of approximately 293 million gallons annually in 34 states through over 310 customer service centers. Through CEG, the Partnership also markets over 800 million gallons of natural gas liquids annually to resellers and end users and an average of 1,500,000 mmbtus per day of natural gas and 17,000 barrels per day of crude oil. For more information, please visit CNO's website at www.cornerstonepropane.com or CEG's website at www.coastenergy.com.
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