Sonat
Encyclopedia
Sonat, Inc., headquartered in Birmingham
, Alabama
, was a large Fortune 500
American energy holding company. The company was founded in 1928 and was listed on the New York Stock Exchange
under the ticker symbol "SNT". Sonat was primarily involved in transmission and marketing natural gas
and oil and gas exploration and production. The company was also involved in contract offshore drilling
until 1995. In 1999 Sonat merged with El Paso Corporation. The company was headquartered in the AmSouth-Sonat Tower in downtown Birmingham.
, for $360 million in cash. Later the next year Sonat Marketing was formed to market and sell natural gas. By the end of the 1980s the company was a leader in natural gas pipeline distribution, exploration and production, and offshore drilling.
In 1993 the company's Sonat Offshore division was spun off as Sonat Offshore Drilling, Inc.. In June 1995 the company sold its remaining stake in Sonat Offshore division to stockholders. On November 23, 1997, Sonat expanded its Exploration and Production division by acquiring Zilkha Energy for $1.3 billion.
company. The E&P unit, Sonat Exploration Company, was blended into El Paso's organization, and the gas transmission unit, Southern Natural Gas Company, is still headquartered in the Birmingham area.
and 50% of Florida Gas Transmission
. Sonat sold the Sea Robin Pipeline in 1999 as a requirement to complete its merger with El Paso. After being acquired by El Paso in 1999, Southern Natural continued to operate as a separate division and kept its corporate headquarters in the AmSouth-Sonat Tower until 2007, when it relocated to the Colonial Brookwood Center located in a suburb of Birmingham.
Publicly owned El Paso Pipeline Partners, which is majority owned by El Paso Corp., owns 60% of the company, with El Paso Corp. owning the remaining 40%.
, was the exploration and production division of Sonat. The company had regional offices in Fort Smith, Arkansas
, Shreveport, Louisiana
, Oklahoma City, Oklahoma
, and Houston and Tyler
, Texas. As a result of the merger with El Paso, the regional offices were closed and the holdings were blended into El Paso's Exploration and Production division.
Birmingham, Alabama
Birmingham is the largest city in Alabama. The city is the county seat of Jefferson County. According to the 2010 United States Census, Birmingham had a population of 212,237. The Birmingham-Hoover Metropolitan Area, in estimate by the U.S...
, Alabama
Alabama
Alabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland...
, was a large Fortune 500
Fortune 500
The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks the top 500 U.S. closely held and public corporations as ranked by their gross revenue after adjustments made by Fortune to exclude the impact of excise taxes companies collect. The list includes publicly and...
American energy holding company. The company was founded in 1928 and was listed on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
under the ticker symbol "SNT". Sonat was primarily involved in transmission and marketing natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
and oil and gas exploration and production. The company was also involved in contract offshore drilling
Offshore drilling
Offshore drilling refers to a mechanical process where a wellbore is drilled through the seabed. It is typically carried out in order to explore for and subsequently produce hydrocarbons which lie in rock formations beneath the seabed...
until 1995. In 1999 Sonat merged with El Paso Corporation. The company was headquartered in the AmSouth-Sonat Tower in downtown Birmingham.
Southern Natural Gas Corporation, 1928-1970s
Sonat was founded in Birmingham, Alabama as Southern Natural Gas Corporation in 1928. In 1953 the company spun off its natural gas utility division, forming Birmingham-based Alabama Gas Corporation. During the 1960s the company changed its name to Southern Natural Resources, Inc. In 1968 the company expanded into forestry by creating Southern Forest Products, Inc.Southern Natural Industries, Inc., 1970s-1980s
In 1972 the company moved into its new 30 story corporate headquarters in downtown Birmingham. The building, called the First National-Southern Natural Building and later the AmSouth-Sonat Tower, was equally owned by and occupied with First National Bank of Birmingham. In 1973 the company changed its name again to Southern Natural Industries, Inc. The company, which was quickly expanding, acquired The Offshore Company in 1978 and soon changed its name to Sonat Offshore.Sonat. Inc., 1980s-1999
By the 1980s Southern Natural had diversified into many different industries. In 1982, the company decided to change its name to Sonat, Inc. to create a better known identity in the energy industry. During this time the company, which had 1981 revenues of $2.4 billion, was ranked as one of the largest companies in the U.S. The company was also ranked as the largest pipeline producer by Forbes. On March 27, 1986 the company expanded its pipeline division by acquiring 50% of Citrus Corporation, which owned Florida Gas TransmissionFlorida Gas Transmission
Florida Gas Transmission is a natural gas pipeline which brings gas from Texas, Louisiana, Mississippi, and Alabama into Florida. It is owned 50% by Southern Union Company and 50% by El Paso Corporation's Southern Natural Gas unit. Its FERC code is 34....
, for $360 million in cash. Later the next year Sonat Marketing was formed to market and sell natural gas. By the end of the 1980s the company was a leader in natural gas pipeline distribution, exploration and production, and offshore drilling.
In 1993 the company's Sonat Offshore division was spun off as Sonat Offshore Drilling, Inc.. In June 1995 the company sold its remaining stake in Sonat Offshore division to stockholders. On November 23, 1997, Sonat expanded its Exploration and Production division by acquiring Zilkha Energy for $1.3 billion.
Merger with El Paso
In March 1999, Sonat announced it was merging with El Paso Corporation in a $6 billion deal in an effort for El Paso to maintain competition in the natural gas markets. At the time of the merger Sonat was a Fortune 500Fortune 500
The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks the top 500 U.S. closely held and public corporations as ranked by their gross revenue after adjustments made by Fortune to exclude the impact of excise taxes companies collect. The list includes publicly and...
company. The E&P unit, Sonat Exploration Company, was blended into El Paso's organization, and the gas transmission unit, Southern Natural Gas Company, is still headquartered in the Birmingham area.
Sonat divisions
Sonat, Inc.'s corporate headquarters and several of its divisions were located in Birmingham, Alabama in the AmSouth-Sonat Tower. By 1999, the company's divisions consisted of natural gas distribution, natural gas marketing, and exploration and production.Southern Natural Gas Company
Southern Natural Gas Company, headquartered in Birmingham, Alabama, was Sonat's natural gas transmission division. The division owned the Sea Robin PipelineSea Robin Pipeline
Sea Robin Pipeline is a natural gas pipeline which brings natural gas from the offshore Gulf of Mexico into Louisiana. It connects into the Henry Hub. It is owned by Panhandle Energy. Sea Robin was formerly owned by Sonat, Inc. through its subsidiary Southern Natural Gas Company. Sonat was...
and 50% of Florida Gas Transmission
Florida Gas Transmission
Florida Gas Transmission is a natural gas pipeline which brings gas from Texas, Louisiana, Mississippi, and Alabama into Florida. It is owned 50% by Southern Union Company and 50% by El Paso Corporation's Southern Natural Gas unit. Its FERC code is 34....
. Sonat sold the Sea Robin Pipeline in 1999 as a requirement to complete its merger with El Paso. After being acquired by El Paso in 1999, Southern Natural continued to operate as a separate division and kept its corporate headquarters in the AmSouth-Sonat Tower until 2007, when it relocated to the Colonial Brookwood Center located in a suburb of Birmingham.
Publicly owned El Paso Pipeline Partners, which is majority owned by El Paso Corp., owns 60% of the company, with El Paso Corp. owning the remaining 40%.
Sonat Marketing
Sonat Marketing was headquartered in Birmingham, Alabama and was primarily engaged in the marketing of natural gas. The company also operated Sonat Power Marketing which marketed and sold electrical power.Sonat Exploration
Sonat Exploration Company, headquartered in Houston, TexasHouston, Texas
Houston is the fourth-largest city in the United States, and the largest city in the state of Texas. According to the 2010 U.S. Census, the city had a population of 2.1 million people within an area of . Houston is the seat of Harris County and the economic center of , which is the ...
, was the exploration and production division of Sonat. The company had regional offices in Fort Smith, Arkansas
Fort Smith, Arkansas
Fort Smith is the second-largest city in Arkansas and one of the two county seats of Sebastian County. With a population of 86,209 in 2010, it is the principal city of the Fort Smith, Arkansas-Oklahoma Metropolitan Statistical Area, a region of 298,592 residents which encompasses the Arkansas...
, Shreveport, Louisiana
Shreveport, Louisiana
Shreveport is the third largest city in Louisiana. It is the principal city of the fourth largest metropolitan area in the state of Louisiana and is the 109th-largest city in the United States....
, Oklahoma City, Oklahoma
Oklahoma City, Oklahoma
Oklahoma City is the capital and the largest city in the state of Oklahoma. The county seat of Oklahoma County, the city ranks 31st among United States cities in population. The city's population, from the 2010 census, was 579,999, with a metro-area population of 1,252,987 . In 2010, the Oklahoma...
, and Houston and Tyler
Tyler, Texas
Tyler is a city in and the county seat of Smith County, Texas, in the United States. It takes its name from President John Tyler . The city had a population of 109,000 in 2010, according to the United States Census Bureau...
, Texas. As a result of the merger with El Paso, the regional offices were closed and the holdings were blended into El Paso's Exploration and Production division.