NorthWestern Acquires Natural Gas Interests from NFR Energy

NorthWestern Corp. (NYSE:NWE) announced that it has bought operating and non-operating natural gas interests located in the Bear Paw Basin — including a 75 percent interest in the Lodge Creek and Willow Creek gas-gathering systems — from NFR Energy LLC.

As quoted in the press release:

The Bear Paw Basin purchase includes approximately 600 producing wells and two connected gathering systems with over 400 miles of pipelines in Blaine, Choteau, Fergus and Hill Counties. The amount of net proven developed producing reserves purchased is estimated to be 13.4 billion cubic feet (Bcf). Net production attributable to the assets purchased will be approximately 1.6 Bcf in 2012, or about 8% of NorthWestern’s current annual natural gas load in Montana.

The purchase price for the Bear Paw Basin assets including the interests in the two gathering systems was $19.5 million (subject to customary post closing adjustments). NorthWestern funded the transaction with a portion of the proceeds from its August bond issuance and with internally generated cash flows. The intent is to capitalize the asset on a long term basis at approximately 50% debt and 50% equity.

Click here to read the full NorthWestern Corp. (NYSE:NWE) press release.