Any thoughts on the company?


Red line 200 MA

24 Mar 2015 "Deutsche Bank cuts Centrica to 'sell' from 'hold', target cut from 280p to 225p"

Centrica ACQUIRES HOME SERVICES PROTECTION PLAN BUSINESS IN NORTH AMERICA


Centrica plc's North American subsidiary, Direct Energy, has acquired the Illinois-based home protection plan business Home Warranty of America (HWA) for $48 million (GBP30 million) in cash.


The acquisition of HWA provides Direct Energy with a national platform to build and grow an extensive protection plan business in the US, offering customers a range of products including heating, air-conditioning, plumbing and electrical cover.


HWA is one of the few providers with the necessary licenses to operate nationwide across the United States. It has over 70,000 customers with high value whole-home warranty plans, a national network of 4,000 contractors, an established national sales force, call centre and information systems, as well as industry-leading service delivery capability.


Last year Direct Energy acquired Clockwork Home Services, making it the leading energy services company in North America, with 3 million customers. The addition of HWA will complement Clockwork's current on-demand business, enhancing its ability to offer protection plan cover to this substantial customer base. It will make Direct Energy the first major provider in North America to offer the dual capability of home energy services and protection plan products, replicating the market-leading model developed by British Gas in the UK.


Chris Weston, President and CEO, Direct Energy, said: "The protection plan market in North America is relatively immature. The addition of HWA provides Direct Energy with the capability to be the first national home services player that can offer dependable, peace of mind home cover delivered 24 hours a day through our highly trained technicians. This will accelerate Direct Energy's access to the US market and its huge growth potential. HWA also offers a strong fit with our strategic priority of creating an integrated North American business."

Sounds a bit like Homeserve! ;o(

It seems the market likes the deal...and that is what matters.
Liked the look of it myself, not an enormous amount of cash for the expanded organisation.

Interim Management Statement.

sell 220p on cards

Good news in today's RNS
Should put TANKER'S 220p out of reach!

entrica forms strategic partnership with Statoil
StockMarketWire.com
British Gas owner Centrica said today it has established a strategic partnership with Norway's Statoil and announced a 1bn Norwegian asset acquisition. Centrica has secured a 13bn 10 year gas supply deal for the UK.

The group also announced a 1bn acquisition of producing and development assets in the Norwegian North Sea.

Centrica today signed a strategic agreement with Statoil ASA for the supply of 50 billion cubic metres (bcm) of gas to the UK. The 10 year, NBP-linked gas supply contract begins in 2015 and secures sufficient gas to meet around five per cent of total UK annual demand, enough for 3.5 million homes. With Britain currently importing around 50% of its gas requirements, the announcement underlines the strategic importance of the Norwegian relationship to UK energy security.

In a separate transaction, Centrica also announced it has reached agreement with Statoil Petroleum AS to acquire a focused package of producing and development oil and gas assets in the Norwegian sector of the North Sea, for a cash consideration of $1.525bn (965m). An additional payment of up to $100m (63m) is contingent on future production performance of the Kvitebjn asset. The value of the gross assets will be determined by the final value of the consideration including the closing adjustment. The deal will add 117 million barrels of oil equivalent (mmboe) of 2P reserves, an increase of 29%, as well as attractive development potential. It is subject to customary closing conditions.

The transaction increases Centricas production by 34,000 boe per day (12 mmboe per annum), an increase of around 25%, strengthening the Companys energy hedge and extending its production profile. It will build on Centricas growing position in Norway, delivering value, substantially increasing scale and improving the sustainability of its upstream business. Centrica also becomes an operator of producing assets in Norway for the first time.

In addition, Centrica and Statoil ASA signed a Memorandum of Understanding (MOU) to consider partnering on gas-focused exploration opportunities in Norway and the UK.

Commenting on the deal, Sam Laidlaw, CEO Centrica, said Centrica is at the forefront of helping to deliver UK energy security and our strategic relationship with Statoil links us to one of the worlds largest gas exporters and a natural partner to the UK. Following the signing of this 10 year deal, the total value of future gas supplies secured by Centrica for the UK now stands at more than 50 billion.

He continued: As well as being the second largest gas producer in the UK, we also have one of the fastest growing exploration and production businesses on the Norwegian continental shelf. This transaction is an important further step in building the business and deploys capital to deliver value. Much of the gas acquired through this transaction will also come to the UK market, providing further energy security for British Gas customers long into the future.

Prime Minister David Cameron said:

I warmly welcome this announcement, which underlines the strength and depth of the partnership that the UK & Norway enjoy. Gas plays a central role in powering our economy, and will continue to do so for decades to come. Todays agreement will help to ensure the continued security and competitiveness of gas supplies to Britain, from a trusted and reliable neighbour".

Helge Lund, President and CEO, Statoil said: Todays announcement is of high strategic importance. Statoil and Centrica, two of the UKs key energy players, are taking on long-term commitments in order to contribute to UKs energy security. The agreement demonstrates that natural gas is set to play an important role in the UKs long term energy mix. Natural gas has all the features needed for the UK to reach its long term energy policy goals of affordability, security of supply and CO2 emissions reduction.

10 year gas supply details:

The gas supply contract is for 50 bcm (19 billion therms) delivered over a 10 year period commencing in October 2015. The price is based on established market indices for gas, linked to the NBP (National Balancing Point) and valued at around 13 billion at todays prices. The contract significantly strengthens UK energy security as it is sufficient to meet around five per cent of total annual UK gas demand, enough for 3.5 million UK households. The delivery volumes will be seasonally shaped to help meet higher winter demand.

A previous 10 year contract between Centrica and Statoil was signed in June 2002 and started in 2005, delivering 5 bcm of gas each year. The construction of the Langeled pipeline, which now provides up to 20 per cent of the UKs gas requirements, was underpinned by this landmark contract.

Asset acquisition details:

The main producing asset acquired, Kvitebjn, is located in the Tampen area 170 km northwest of Stavanger, near Centricas existing interest in the Statfjord field, and ties into the Troll Terminal for onward export to the UK. Kvitebjn produces around 60 mmboe per annum of gas and oil, with 2P reserves estimated to be 473 mmboe at the end of 2011. (Centricas share will be 11.4 mmboe per annum of production, 90 mmboe of 2P reserves).

The largest development prospect acquired is Valemon, situated a few kilometres southwest of Kvitebjn. It is the largest high pressure high temperature (HPHT) gas development in Norway and has total 2P reserves of 162 mmboe. (Centricas share will be 21 mmboe). Story provided by StockMarketWire.com

op they can have mountings of gas BUT if they charge the highest price for it they will not sell it.
eon is cheaper than bg fact

TANKER, I was with EON at one time and their customer service was terrible. I am not with BG but I have more confidence than you in the ability of Centrica to sell the contracted gas..as they have done with the previous contract over the last 10 years.

Centrica plc's North American subsidiary, Direct Energy, has agreed to acquire a package of liquids-rich natural gas assets located in west central Alberta (the Carrot Creek Assets) from Encana Corporation (Encana) for C$58m (GBP37m) in cash. As part of the transaction Encana will also receive from Direct Energy a number of gas producing wells and related infrastructure in southern Alberta.


The Carrot Creek Assets include 80 producing wells, associated infrastructure and a gas processing plant with natural gas liquid extraction capability. The transaction will provide Direct Energy with a net additional 25.6 billion cubic feet equivalent (Bcfe) of proven and probable reserves, an increase of approximately 4%, split 42% gas and 58% liquids. The resulting net increase in production will be 6.2 million cubic feet equivalent per day (MMcfe/day).


Carrot Creek is located 160 km west of Edmonton and lies adjacent to the successful Cardium oil development in which Direct Energy is already involved. This acquisition represents a unique opportunity to invest in a liquids-rich, multi-zone area that has significant development potential, deploying the same horizontal drilling techniques currently utilised by Direct Energy.


Chris Weston, President and CEO of Direct Energy said: "The acquisition of the Carrot Creek Assets is an attractive opportunity to grow our North American upstream gas business while exiting some non-core positions in southern Alberta. This represents both a valuable addition to our existing reserves and offers the potential to develop significant resources."


This acquisition marks the latest stage in the growth of Direct Energy's upstream business. The company has been active in the Western Canadian Sedimentary Basin since 2000. Last year it acquired ownership of natural gas assets in the Wildcat Hills region of Alberta, increasing its natural gas reserves by approximately 60%. During 2011 Direct Energy has also seen its customer demand grow steadily, adding nearly half a million new customer accounts through the purchase of the New York-based energy retailer Gateway Energy Services and the addition of First Choice Power in Texas.

Wee punt on the spreads in today @284.3 (March contract)

http://bit.ly/yfeTzZ

Overcooked gloom makes Centrica good long-term play: Centrica was the worst-performing utility group in terms of...

GF - these have been on my buy back list for a while TP sub 280 (which may have gone for a while). 10p+ divi to come in May.

profits will be down over 20% due to warm weather .

TANKER, not so warm in Yorkshire, my usage not down 20%

op move south nice weather and about 3% warmer in the winter .
hope you are well ,

Thanks TANKER but got a bad cold....it's the bl**dy cold up here!

op . buy local honey and a spoon full a day .
and then go to holland and barrett and buy zinc take
one ever day cost about 400p a year no more colds .

And end up with diabetes and zinc related toxicity problems!
"Taking zinc syrup, tablets or lozenges can lessen the severity and duration of the common cold, experts believe.

A review of the available scientific evidence suggests taking zinc within a day of the onset of cold symptoms speeds recovery.

It may also help ward off colds, say the authors of the Cochrane Systematic Review that included data from 15 trials involving 1,360 people.

But they say zinc cannot be used long-term because of toxicity concerns.

Excessive amounts can cause nausea, vomiting, abdominal pain and diarrhoea."

harry i have taken one ever day since i was 10 now 64 and fit as a 30year old
the body needs zinc llok again

A balanced diet and regular exercise is all that's needed for most healthy individuals. Supplements just get discharged in the normal way and a complete waste of money, imo. Also, there is nothing wrong in the body having to occasionally combat virus's and germs. Your healthy diet & exercise lifestyle should cope with them.