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November 7, 2008

Constellation to sell Texas plant to raise cash

Details from Constellation Energy's earnings report in Hanah Cho's story in today's Baltimore Sun:

Constellation Energy Group said yesterday that it wants to sell another part of its volatile commodities trading operations and is taking more steps to shore up its balance sheet ahead of its pending $4.7billion sale to Warren Buffett's MidAmerican Energy Holdings Co.
The Baltimore company said it will receive up to $350 million in additional liquidity from MidAmerican, which had already provided an immediate $1 billion cash infusion as part of the deal.

Constellation also plans to sell its Houston-based natural gas trading business, on top of previously announced sales of another portion of its natural gas assets and international coal and freight business. Constellation expects to increase its liquidity by up to $1.5 billion through the return of collateral, which is required in its trading operations, once the sales are completed.

Posted by Jay Hancock at 10:42 AM | Permalink | Comments (1)

Comments

Constellation Energy embracing more use of natural gas in Texas, calling this clean, abundant and domestic energy source ‘an ideal fit to support expanding commercial businesses in Texas.’ Read more about it at anga.us/blog.

Posted by: ANGA US | April 20, 2010 4:36 PM

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About Jay Hancock

Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Tuesdays and Sundays.

Follow @jayhancock1 on Twitter