Gateway Energy Corp. reported that it has signed an agreement to purchase energy infrastructure assets from a private company. The company agreed to pay $1.1 million to Laser Pipeline Company, LP, a private oil and gas company, in exchange for four separate natural gas pipelines. Laser Pipeline Company, LP is headquartered in Houston, Texas.
Gateway Energy Corp. said that the four natural gas pipelines service various chicken processing facilities owned by Tyson Foods, Inc. The facilities are located in Texas, Arkansas and Missouri.
Gateway Energy Corp. also assumed the obligations of Laser Pipeline Company, LP under several long-term contracts with Tyson Foods, Inc. The contracts call for the delivery of natural gas to the four facilities at a fixed rate.
The management of Gateway Energy Corp. said that the acquisition was immediately accretive to earnings and cash flow and would diversify the asset base of the company. The company also said that the pipelines were inexpensive to operate and would not materially increase the expenses of the company.
Gateway Energy Corp. said that the deal would close before the end of October 2010. The company has not finalized whether it would use cash, credit line or issue common stock to fund the purchase.
For more information on the company, go to www.gatewayenergy.com
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