DEARBORN, Mich., April 8, 2003 — CMS Energy announced that its CMS Marketing, Services and Trading (MST) subsidiary has closed the sales of its wholesale electric book and related supply portfolio, and its 50 percent interest in Texon L.P.
MST sold the wholesale power book to Constellation Power Source, Inc., for $33.8 million with a possible increase to $40 million, depending upon future performance of the book.
MST’s Texon interest was sold to a group of investors led by Terry Looper. Looper is the president of Texon Holding Company, which owns the other half of Texon L.P. Terms of the transaction weren’t disclosed.
Texon specializes in purchasing, transporting, and marketing oil and natural gas liquids in the United States.
CMS Energy will use the proceeds from both sales to strengthen liquidity.
Ken Whipple, CMS Energy’s chairman and chief executive officer, said the sales were another step forward in the Company’s back-to-basics strategy and a boost to its continuing efforts to strengthen liquidity and reduce debt.
“The sale of MST’s wholesale electric book has a positive impact that goes beyond the obvious benefit of helping us reduce debt. It also strengthens our liquidity because it frees up a significant amount of credit and cash reserves that were required to support the wholesale electric book,” Whipple said.
Whipple said the sale was an important part of the process to phase out the MST business and close the Houston office.
“We’ll complete the phase-out process with the sale or phase-out of our Michigan gas and electric retail choice businesses. We will continue some wholesale functions, primarily the purchase of natural gas for our non-utility power plants and the sale of power from those plants, as well as meeting our gas transportation commitments to existing customers,” Whipple said.
“This plan for MST is part of our continuing effort to strengthen liquidity, reduce our overall business risk, and provide more predictable earnings.”
CMS Energy Corporation is an integrated energy company, which has as its primary business operations an electric and natural gas utility, natural gas pipeline systems, and independent power generation.
For more information on CMS Energy, please visit our web site at: www.cmsenergy.com