Prager, NGP buy energy assets for $342m

In their second joint acquisition this year, Paul Prager and Natural Gas Partners will acquire a portfolio of power generating stations and transmission projects for $342 million.

Natural Gas Partners has paired with energy industry veteran Paul Prager for a second time this year, this time to acquire several generating stations and transmission projects from the city of Vernon, California in a $342 million (€241 million) deal. Lehman Brothers will provide debt financing for the transaction.

Generation plant

“The Vernon facilities are exactly the kind of opportunity we sought out when we partnered with NGP earlier this year to build a high quality and environmentally responsible power company,” Prager said in a statement.

He added that the purchase is consistent with the partnerships’ focus on contracted generation, and will enhance its position in California and the Western Electricity Coordinating Council energy markets.

Natural Gas Partners and Prager also worked together this June to acquire the North American power businesses of MDU Resources Group for $636 million, which they renamed Bicent Holdings.

Prager founded Davco Oil, a crude oil and crude product physical and derivatives trader, in 1987. He has focussed on developing and operating energy facilities and maritime assets for the past two decades.