ST. LOUIS, Sept. 2, 2014 /PRNewswire/ -- The Laclede Group,
Inc. (NYSE: LG) ("Laclede") has
completed its purchase of 100 percent of the equity of Alabama Gas
Corporation (Alagasco) from Energen Corporation (NYSE: EGN)
effective August 31, 2014. The
purchase price included the assumption of $250 million of Alagasco long-term debt and cash
consideration of approximately $1.35
billion, subject to typical adjustments for working capital
and short-term borrowing at closing. The cash consideration was
raised in separate debt and equity offerings completed in the last
three months.
"We are excited to complete the acquisition of Alagasco less
than five months after announcing and ahead of our September 30th target," said
Suzanne Sitherwood, president and
CEO of The Laclede Group. "Looking ahead to fiscal 2015, our focus
will be to continue delivering on our commitments to grow our
earnings and cash flow, and invest back in our new, larger business
to ensure the continued excellent service our customers have come
to expect."
Laclede now serves more than
1.5 million customers in Missouri
and Alabama, making it the largest
natural gas service provider in both states. Laclede also ranks as the fifth largest
publicly traded gas utility in the country based on number of
customers served.
"We welcome Alagasco's employees to the Laclede team. We are pleased to continue the
long tradition of outstanding service to customers and the
communities across Alabama. Like
Alagasco, Laclede has a long
history of supporting the civic and charitable activities in the
areas we serve. We look forward to continuing to support that
tradition of involvement in Alabama," said Sitherwood.
Laclede's purchase of Alagasco
further expands its footprint of regulated gas utilities and
follows the September 2013 purchase
of natural gas utility Missouri Gas Energy (MGE). Both acquisitions
supported Laclede's strategic
focus on growing its regulated gas utility business. Alagasco also
creates geographic and regulatory diversity by expanding
Laclede's scope into Alabama. The acquisition is expected to be
strongly accretive to both earnings and cash flow. As previously
announced, Laclede is targeting
long-term growth in its earnings per share of four to six percent.
For fiscal 2015 and 2016, Laclede
expects its earnings per share growth to be in excess of that
target range. The significant additional cash flow expected from
Alagasco will support reinvestment in the business, Laclede's growing dividend and deleveraging of
the business over time.
ABOUT THE LACLEDE
GROUP
The Laclede Group, Inc. (NYSE: LG), headquartered in St. Louis, Missouri, is a public utility
holding company whose primary business is the safe and reliable
delivery of natural gas service to more than 1.5 million
residential, commercial, and industrial customers across
Missouri and Alabama. Its Gas Utility segment consists of
three natural gas utilities: Laclede Gas (serving
St. Louis and eastern Missouri), Missouri Gas Energy (serving
Kansas City and western
Missouri) and Alabama Gas
Corporation (serving more than 200 Alabama communities
including Birmingham and
Montgomery.)Laclede's primary non-utility business,
Laclede Energy Resources, Inc., included in the Gas Marketing
segment, provides non-regulated natural gas services. Laclede Group
is committed to pursuing growth through 1) developing and investing
in emerging technologies; 2) investing in infrastructure; 3)
acquiring businesses to which the Company can apply its operating
model, and 4) leveraging its current business unit competencies.
For more information about Laclede
and its subsidiaries, visit www.TheLacledeGroup.com.
CAUTIONARY STATEMENTS ON FORWARD-LOOKING INFORMATION
This news release contains forward-looking statements within the
meaning of Section 21E of the
Securities Exchange Act of 1934, as amended. Laclede's future operating results may be
affected by various uncertainties and risk factors, many of which
are beyond the Laclede's control,
including weather conditions, economic factors, the competitive
environment, and governmental and regulatory policy and action. For
a more complete description of these uncertainties and risk
factors, see the Laclede's Annual
Report on Form 10-K for the fiscal year ended September 30, 2013, as amended and Laclede's Quarterly Report on Form 10-Q for
the quarter ended June 30, 2014, each
filed with the Securities and Exchange Commission.
SOURCE The Laclede Group, Inc.