The deal includes $1.28 billion in cash and $320 million of Alagasco debt, for estimated after-tax proceeds to Energen of $1.1 billion, after consideration of "accelerated intangible drilling costs".
Missouri-based utility Laclede Group is the buyer. Laclede is the fifth largest pure-play natural gas utility in the US, Energen said.
“This transaction allows Energen to clarify its corporate structure by becoming a pure exploration and production company, a trend being rewarded by the financial markets,” said Energen chief executive James McManus.
Algasco
