Southern Union to Purchase Sid Richardson

SCRANTON, Pa. – Natural gas distributor Southern Union Co. said Friday it has agreed to buy Sid Richardson Energy Services Co., a privately held natural gas gathering and processing concern, along with a related energy marketing business, for $1.6 billion in cash.

The deal would expand Southern Union’s pipeline network to more than 22,000 miles, extending from the Gulf of Mexico to the Southwest, Midwest and Canada, the company said. Southern Union’s pipeline currently operates in 17 states.

The Fort Worth, Texas-based Sid Richardson Energy was founded in 1948 by Richardson and his nephew and business partner, Perry R. Bass, according to the company Web site. It was part of the business empire that Richardson, a lifelong bachelor, left to Bass and his family when Richardson died in 1959.

Sid Richardson Energy has 4,600 miles of natural gas and natural gas liquids pipelines in the Permian Basin, and six active natural gas treating plants.

Southern Union said Sid Richardson’s gathering and processing business would complement its existing transportation and liquid natural gas businesses.

The acquisition will add to Southern Union’s earnings next year, it said. The transaction is expected to close in the first quarter of 2006, pending antitrust clearance and other closing conditions.

Southern Union shares fell 56 cents, or 2.3 percent, to $24.38 in morning trading on the New York Stock Exchange.

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On the Net:

http://www.sidrich.com

http://www.southernunionco.com