TriEagle Energy Acquired by Retail Supplier

Crius Energy Trust today announced that Crius Energy LLC has entered into a binding share purchase agreement to acquire all of the outstanding equity interests in TriEagle Energy LP, a Houston-based energy retailer, for an aggregate purchase price of approximately $22 million, subject to regulatory and other approvals.

"The acquisition adds a diverse portfolio of residential, commercial and municipal aggregation customers totaling approximately 200,000 residential customer equivalents (RCEs) in Texas, Pennsylvania, and New Jersey," Crius said

"This acquisition, our largest since IPO, is consistent with our strategy to act upon attractive opportunities to drive growth while diversifying our portfolio and is expected to be accretive in its first full year. We plan to leverage this acquisition for entry into Texas through multiple Crius distribution channels and will immediately begin to work with the talented TriEagle team to significantly expand our commercial business across all Crius markets," said Michael Fallquist, Chief Executive Officer of Crius Energy.

"This transaction accelerates the ongoing diversification of Crius Energy's customer portfolio by increasing the company's overall number of commercial customers, fixed rate accounts, and adding a significant customer base in Texas. In addition, the acquisition broadens Crius Energy's distribution capabilities through an expanded commercial broker network and a track record with municipal aggregations," Crius said.

The acquisition is expected to close early in the second quarter of 2015, and will be funded by cash and availability under Crius's credit facility with Macquarie Energy LLC. The $22.2 million purchase price is made up of $18.8 million in cash and $3.4 million in phantom unit rights which will be settled in cash based on future trading prices of Trust units on the Toronto Stock Exchange over a two-year vesting schedule. Crius expects the acquisition to provide revenue and operational synergies and be accretive to distributable cash flow per unit in 2015.