Crystal Oil makes announcement.SHREVEPORT Shreveport (shrēv`pôrt), city (1990 pop. 198,525), seat of Caddo parish, NW La., on the Red River near the Tex. and Ark. lines; inc. 1839. , La.--(BUSINESS WIRE)--May 3, 1995--Crystal Oil Company (ASE (Adaptive Server Enterprise) A relational DBMS from Sybase that runs on Windows NT/2000, Linux and a variety of Unix platforms. ASE is a comprehensive and robust data management product with a long history dating back to the late 1980s. :COR cor (kor) [L.] heart. acute cor pulmonale acute overload of the right ventricle due to pulmonary hypertension, usually due to acute pulmonary embolism. ) today announced that it entered into an agreement to purchase First Reserve Gas Company ("FRGC FRGC Face Recognition Grand Challenge "), a natural gas storage company located in Hattiesburg, Miss., for a cash purchase price of approximately $78 million, subject to certain adjustments. The agreement to purchase FRGC is subject to various conditions, including regulatory approvals. The closing of the transaction is expected to occur by the end of the second quarter 1995. The proposed acquisition by Crystal of FRGC represents the first acquisition by Crystal following the disposition of its domestic oil and gas producing properties to Apache Apache (əpăch`ē), Native North Americans of the Southwest composed of six culturally related groups. They speak a language that has various dialects and belongs to the Athabascan branch of the Nadene linguistic stock (see Native American Corporation in December 1994. The acquisition is expected to be funded through a combination of Crystal's available cash and non-recourse financing. Crystal expects that approximately $20 million of its available cash will be needed to fund this transaction, leaving Crystal with more than $65 million in cash for future transactions. FRGC is a natural gas storage company located in Hattiesburg, Miss. with 5.5 billion cubic feet of storage capacity and interconnections into various major pipeline systems, including the Transco and Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. pipelines. FRGC's revenues and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for 1994 were $11.8 million and $6.7 million, respectively. FRGC's operations in Hattiesburg are operated by a staff of 7 employees. Joe Averett, President of Crystal, stated that he was pleased with the proposed acquisition and its potential effect on Crystal. He noted that while the operations of FRGC are expected to generate a steady source of income for Crystal, the operations will not require a substantial increase in staffing overhead. He also noted that the non-recourse nature of the financing proposed for the transaction, together with the Company's anticipated cash position of $65 million subsequent to the acquisition, is expected to provide Crystal with the financial flexibility to continue pursuing other substantial acquisitions and income generating opportunities. CONTACT: Crystal Oil Company, Shreveport Jeffrey A. Ballew, 318/222-7791 |
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