Deal Shows Nat Gas' Inexorable March

Another sign of the inevitability of natural gas as the future fuel of this country emerged Thursday with Energy Transfer Equity's ETE buyout of Southern Union SUG for $4.11 billion. This deal for pipelines and storage will make Energy Transfer the largest pipeline company in the United States, with 44,000 miles of pipe capable of moving 30.7 bcf of gas a day. Not that this deal has come as a surprise to many who have been following Southern Union. CEO George Lindemann has been hinting at an exit strategy to shareholders. Finding the right partner and the right market environment have been the only barriers to a sale. With natural gas prices hinting at a rise from their seemingly endless lower boundaries around $4, and recent sector rotation out of natural gas stocks dropping market valuations on pipeline companies, the time seemed right for this monster buyout. Continue reading the article.