IBJNews

ProLiance Energy sold to Dallas company

Back to TopCommentsE-mailPrintBookmark and Share

Indianapolis-based ProLiance Energy, which has lost tens of millions of dollars in recent years amid falling natural gas prices, is being sold to Dallas-based Energy Transfer Partners.

The sale was announced late Tuesday by Evansville-based Vectren Corp., which owns 61 percent of ProLiance, and by Indianapolis-based Citizens Energy, which owns the other 39 percent of energy marketing firm ProLiance.

The sale price was not disclosed.

As of last year, ProLiance had about 100 employees based in Indianapolis. Energy Transfer Partners “plans to maintain an Indianapolis office and to retain most current ProLiance employees,” Vectren and Citizens said in a news release

Vectren said it will record an after-tax net loss related to the ProLiance transaction of up to $28 million, or 34 cents a share, in the second quarter. 

It was unclear how the deal will affect Citizens, a public charitable trust that operates the city’s natural gas and water utilities.

In a recent filing with regulators, Vectren said its energy marketing group consisting of ProLiance had a $4.6 million loss in the first quarter.

But ProLiance has struggled for several years. For example, in the first nine months of 2012 it was hit with a $57.2 million pretax loss, which caused some analysts to speculate then that Vectren and Citizens would be shopping for a buyer for ProLiance.

ProLiance was formed in 1996 to sell and transport natural gas to industrial users and utilities. The company, based at 111 Monument Circle, has saved Citizens Energy and Vectren customers more than $200 million in lower natural gas costs over the years, according to Citizens CEO Carey Lykins.

Gas-marketing firms emerged after deregulation in the 1980s. They offer to find buyers for gas and arrange delivery, offering short- or long-term contracts.

Demand was strong for such services during a period when natural gas prices fluctuated wildly because gas contracts offered gas buyers a hedge against price volatility.

But margins of ProLiance have been squeezed more recently as natural gas prices have fallen. More natural gas became available from shale, and new gas pipelines around the country improved transmission capacity.

Finally, demand by industry for natural gas fell over the last several years as the economy sputtered.

Energy Transfer Partners has its own natural gas operations, including 47,000 miles of pipelines and storage facilities.

An ETP unit also owns Sunoco Inc. and Southern Union Co.


 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Yes sir keep cashing those 300K a year checks direct to IMS, while millions disappear from the teams like Rahal's. Guess there wasn't enough ka- ching going around to keep Sarah Fisher in business without their "merger". LOL._____.Meanwhile back in Realville the series with the "best racing in the world" drew what appeared to be about 5000 live spectators ( and probably 1500 of those Target "freebies", and was beaten in the ratings by a series that reportedly consists of "parades" and aired while most people are still sleeping. That will generate those big ka-chings for sure. :-). But, hey, as long as the Speedway gets the cash who gives a damn about the teams?

  2. Welcome to PETERSON LOAN AGENCY Company (A Personalized Service for All Your Financial Needs) We, Liberal Investment Company Providers offers loan at a very low interest rate of 2%, we offer Personal loans, Debt Consolidation Loan, Venture Capital, Business Loan, Educational Loan, Home Loan, and Loan for any reason and urgent needs!. with a maximum duration of 30 years. Have you been turned down by your bank? Do you have bad credit? Do you have unpaid bills? Are you in debt? Do you need to set up a business? Worry no more as we are here to offer you a low interest loan. Our loan ranges from $5,000-USD (Five Thousand US dollars) to $50, 000,000.00.(Fifty Million US dollars). We also lend in USA DOLLARS EURO and POUNDS ! Fill in this form and forward it to our email: PETERSONLOANAGENCY@GMAIL.COM 1. Your Full names:_______ 2. Contact address:_______ 3. Country Of Residence:______ 4. Loan Amount Required:________ 5. Duration:_____ 6. Gender:_____ 7. Occupation:________ 8. Monthly Income:_______ 9. Date Of Birth:________ 10.Telephone Number:________ 11. Purpose of loan:_________ Yours In Service, MR PERRY, PETERSONLOANAGENCY@GMAIL.COM

  3. If I could actually get the prices...I would do this on my own. We need laws that force provides to publish the costs they will charge. Everyone else gives you the price in advance...except hospitals.

  4. I was under the impression that fencing is not allowed on a front yard and that on a corner, both sides are considered "front" yards, therefore can't be fenced without a variance. Also impedes the visibility for drivers at the intersection. Am I understanding this correctly? Might be why a fence was not included in the plans and a request for a variance will have to be made?.

  5. I was a big fan of Cowards and Carrots, which I got a chance to see at the show. It's currently on Kickstarter, but the designer also put out What's He Building in There last year, which got a fair amount of buzz.

ADVERTISEMENT