Twin Eagle Resource Management Acquires Energy Marketer Enserco

Twin Eagle Resource Management, LLC, which is engaged in various marketing activities including retail supply, has announced a definitive agreement to purchase all of the outstanding stock of Enserco Energy, Inc., a natural gas, power, coal, and crude oil marketing company, from Black Hills Corp.

Though terms were not disclosed, Black Hills said that net cash proceeds to Black Hills from the transaction are expected to total approximately $160 million to $170 million, subject to working capital and other closing adjustments.

The acquisition, subject to certain regulatory approvals, is expected to close in the first quarter of this year.

"The deal is expected to add a strong western US and Canadian footprint to Twin Eagle's existing operations," Twin Eagle said.

Specifically, the transaction will include the following:

• Natural Gas Marketing business in the Western US and Canada with 8 BCF of leased storage and 250,000 MMbtus/day of firm transportation

• Power Marketing business serving municipal and retail load

• Physical Crude Gathering and Marketing business averaging 30,000 BPD.

• 12 owned or leased physical crude terminals

• Physical Coal Marketing business with strong supply contracts throughout the United States; 35,000 tons/day of physical coal deliveries.

• Strong rail transportation contracts and expertise in logistics management

Griff Jones, President and Chief Executive Officer of Twin Eagle said, "The purchase of Enserco Energy will immediately accelerate our organic growth plan to build our capabilities in North America. We were also attracted to Enserco's physical coal and crude operations that align with Twin Eagle's business philosophy of strong customer relationships, great logistics expertise and solid risk management."

During the third quarter of 2011, Black Hills said that it had received "multiple" unsolicited inquiries from companies interested in purchasing Enserco.