NorthWestern Energy Completes Purchase of Natural Gas Assets in Montana
BUTTE, Mont., Dec. 2, 2013
BUTTE, Mont., Dec. 2, 2013 /PRNewswire/ --NorthWestern Corporation d/b/a
NorthWestern Energy (NYSE: NWE) has completed the $70.2 million purchase
(subject to customary post-closing adjustments) of operating and nonoperating
natural gas production interests in northern Montana's Bear Paw Basin from
Devon Energy Production Company, L.P. (Devon). This purchase also includes
Devon's 82 percent interest in the Havre Pipeline Company, LLC.
"We're pleased to have secured another gas production asset in Montana that
will help provide long-term supply price stability and reliability for our
customers," said Bob Rowe, CEO. "We're also pleased to welcome the newest
members of the team to the NorthWestern Energy family. We look forward to
getting to know them as co-workers in the Havre area." Twenty-nine former
Devon employees accepted positions with NorthWestern Energy bringing the
company's total Havre-area workforce to approximately 70 employees.
NorthWestern Energy purchased Devon's interests in about 900 wells that will
produce approximately 5.6 Bcf in 2013. The facilities have 63 Bcf of net gas
reserve and exist in the Bear Paw fields near NorthWestern's other natural gas
production assets.Devon's interest also includes an 82 percent ownership in a
limited liability company that owns and operates the Havre Pipeline consisting
of 82 miles of transmission lines, 576 miles of gas gathering lines, and 21
compressors in Blaine, Chouteau and Hill Counties.
Estimating a 20 Bcf annual natural gas usage of NorthWestern's core customers,
the 5.6 Bcf of 2013 production from the Devon transaction would represent
about 28 percent of the supply portfolio. Including the Battle Creek, existing
Bear Paw assets and the Devon transaction, NorthWestern production would
supply 37 percent of the core customer needs.
NorthWestern Energy currently owns gas production interests in the Battle
Creek Field and the Bear Paw Basin which extends from the Missouri River North
to the Canadian Border. Pipeline assets associated with the gas production
include Havre Pipeline, Bear Paw, Willow Creek, Lodge Creek and Battle Creek
gathering systems, all located in north-central Montana.
About NorthWestern Energy (NYSE: NWE)
NorthWestern Energy provides electricity and natural gas in the Upper Midwest
and Northwest, serving approximately 673,200 customers in Montana, South
Dakota and Nebraska. More information on NorthWestern Energy is available on
the company's website at www.northwesternenergy.com.
SOURCE NorthWestern Corporation
Contact: Media: Claudia Rapkoch, (866) 622-8081,
Claudia.firstname.lastname@example.org or Investors: Travis Meyer, (605) 978-2967,
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