Centrica’s North American subsidiary, Direct Energy Business has agreed to acquire the Energy Marketing business of Hess Corporation, for US$731m (£478m) in cash plus net working capital, estimated at approximately US$300m.
The Energy Marketing business is one of the largest B2B energy suppliers in the Eastern US, operating in 18 states. The acquisition builds on Direct Energy’s existing capabilities and further integrates these activities along the gas value chain, linking gas supply from producers and other market participants through secured transport and storage capacity to the gas and power customer base. In 2012, the Energy Marketing business supplied 378 bcf (10.7 bcm) of gas and 28 TWh of power to over 23,000 customers. When combined with Direct Energy’s existing business, which in 2012 supplied 77 bcf (2.2 bcm) of gas and 51 TWh of power, the acquisition will make Direct Energy the largest business gas supplier on the East Coast of the US and the second largest business power supplier in the competitive US retail markets.
Interested in Global Energy Research?
Enerdata's premium online information service provides up-to-date market reports on 110+ countries. The reports include valuable market data and analysis as well as a daily newsfeed, curated by our energy analysts, on the oil, gas, coal and power markets.
This user-friendly tool gives you the essentials about the domestic markets of your concern, including market structure, organisation, actors, projects and business perspectives.