Overview:
Summary
High Plains Diversified Energy Corporation (HPDEC) made an agreement with PSEG Power on January 13, 2011 to purchase, through bond financing of $335m, their 1,000-MW natural gas-powered generation facility located near Odessa, Texas. This is in addition to another announcement made by HPDEC to acquire the 550-megawatt Quail Run Energy Center in Odessa from Constellation Energy Corporation on December 30, 2010. As expected, both the transactions will be closed during the first quarter of 2011. With the completion of these acquisitions, HPDEC will have purchased a combined 1,550 MW of natural gas-fired electric generation at a significantly lower price than if it were to build a plant of similar capacity. These two acquisitions have been planned by HPDEC to help them meet their required capacity to keep providing low cost electricity and also enhancing the distribution reliability for their customers in West Texas.
Scope
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The information related to High Plains Diversified Energy Corporation’s acquisition of PSEG Power
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Comparison of acquisition deals in power industry
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Key drivers of the deal
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Rationale of the deal
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A brief on companies, High Plains Diversified Energy Corporation and PSEG Power
Reasons to buy
The Deal Report allows the reader to-
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Understand the reasons for the acquisition
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Understand the response from the markets
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Understand the impact of the deal on High Plains Diversified Energy Corporation
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