A Walter Energy subsidiary has made a $210 million purchase.
Walter Natural Gas LLC, a subsidiary of Tampa-based Walter Energy, has purchased the natural gas assets of HighMount Exploration & Production LLC for $210 million in cash.
Walter Energy's core competency is coal production, and this gas-focused purchase appears to compliment that core effort. Interim CEO Joe Leonard explained the deal's relevance in a release.
“This acquisition,” he said, “is more important to us because it helps ensure that future coal production areas will be properly degasified, thereby improving the safety and operational efficiency of our existing and future underground coking coal production.”
The acquired assets are located in Tuscaloosa County, Ala., adjacent to the company's existing natural gas operation. As most of its assets are now located in that state, Walter Energy will transfer its headquarters from Tampa to Alabama later this year.