Constellation NewEnergy Gas Division Completes Acquisition of Cornerstone Energy, Inc.
Expansion Significantly Enhances Scale, Provides Entry to New Markets
BALTIMORE, July 2 -- Constellation Energy (NYSE:CEG) announced today that its subsidiary, Constellation NewEnergy Gas Division (CNE Gas), has completed the acquisition of Cornerstone Energy, Inc., creating one of the nation's largest natural gas marketing companies.
With this acquisition, CNE Gas will increase its annual volume by 29 percent to over 450 billion cubic feet (Bcf) of natural gas deliveries, expand its geographic footprint in the northern and Midwestern United States and broaden its leadership in new and existing markets such as the growing ethanol markets.
"Integration activities have gone well and today we are in an excellent position to leverage our new size, talent and capabilities across new and existing markets," said Andrew (Drew) Fellon, president of CNE Gas. "This expansion provides CNE Gas with an immediate and powerful presence in northern and Midwestern states and broadens our growing customer base from large to mid-size commercial, industrial and institutional users to thousands of smaller business customers."
In addition, Constellation NewEnergy Gas Division obtains the expertise of the leadership and employees who have helped build Cornerstone Energy's significant market presence in the northern and Midwestern United States. Cornerstone Energy's 42 employees, including its founders, now join CNE Gas, operating under the Constellation NewEnergy Gas Division brand from its base in Omaha, Neb., and reporting into the CNE Gas headquarters in Louisville, Ky.
Cornerstone Energy provides natural gas supply and financial hedging services to more than 1,400 commercial, industrial and institutional customers across the Mid-Continent United States. It also provides natural gas and related services to more than 8,500 small commercial businesses.
Constellation Energy expects the transaction to be neutral to 2007 earnings and modestly accretive in 2008.
Constellation NewEnergy (http://www.newenergy.com/), a wholly owned subsidiary of Constellation Energy (NYSE:CEG), is a leading competitive supplier of electricity, natural gas and energy-related services to commercial, industrial and institutional customers throughout North America. Constellation NewEnergy operates in all competitive energy markets throughout Canada and the United States, providing products that enable customers to effectively manage and control energy costs. Constellation NewEnergy's regional expertise, coupled with its national presence, provides customers with customized energy products and services while leveraging the assets of one of the strongest integrated energy companies in North America. Constellation NewEnergy, based in Baltimore, serves more than 19,000 commercial, industrial and institutional customers throughout 31 states and three Canadian provinces representing nearly 14,000 megawatts of peak load and more than 354 billion cubic feet of annual natural gas consumption.
Constellation Energy (www.constellation.com), a FORTUNE 200 company with 2006 revenues of $19.3 billion, is the nation's largest competitive supplier of electricity to large commercial and industrial customers and the nation's largest wholesale power seller. Constellation Energy also manages fuels and energy services on behalf of energy intensive industries and utilities. It owns a diversified fleet of 78 generating units located throughout the United States, totaling approximately 8,700 megawatts of generating capacity. The company delivers electricity and natural gas through the Baltimore Gas and Electric Company (BGE), its regulated utility in Central Maryland.
FCMN Contact: diana.hayden@constellation.com
Source: Constellation Energy
CONTACT: Media, Lawrence McDonnell, +1-410-470-7433, for Constellation Energy
Web site: www.constellation.com/ http://www.newenergy.com/
