El Paso Buys Integrys Unit

Natural gas production and transmission firm El Paso(EP Quote) is purchasing Peoples Energy Production from Integrys Energy(TEG Quote) for $875 million in cash.

Peoples controls 305 billion cubic feet equivalent of proved reserves and produces 72 million cubic feet of natural gas a day. Roughly 94% of its production is natural gas.

El Paso is in the process of swapping out lower-quality E&P assets for ones that it deems more productive and longer lasting. The investment in Peoples is considered a major step in this process, according to El Paso Exploration & Production president Brent Smolik. ...