|
Duke buys UPR gas unit
|
 |
November 22, 1998: 3:40 p.m. ET
Deal makes Duke largest natural gas liquids producer in the United States
|
FORT WORTH, Texas (CNNfn) - Gas and oil exploration company Union Pacific Resources Group Inc. said Sunday it would sell its domestic natural gas operations to Duke Energy Corp. for $1.35 billion.
The deal makes Duke the leading natural gas liquids producer in the United States.
The sale of gas gathering, processing, pipeline and marketing operations is the latest and largest in a series of divestments by the Fort Worth, Texas company aimed at reducing debt and refocusing business on other exploration and development opportunities in the United States, Canada and Latin America.
The sale gives Duke a much greater market presence in Texas, Louisiana and the Rocky Mountains and NGL production in excess of 200,000 barrels per day.
"We believe growth opportunities in natural gas processing and processing will offer better returns for our shareholders over time," said Rick Priory, president and chief executive officer of Duke.
The Charlotte, N.C.-based company, formed from the 1997 merger of electric utility company Duke Power and natural gas pipeline operator Pan Energy, will increase the number of processing plants it owns or has a stake in from 41 to 60.
The purchase is contingent on receiving approval under the federal antitrust Hart-Scott-Rodino Act and is expected to close at the end of the first quarter of 1999.
Union Pacific Resources, a spin off of U.S. railroad giant Union Pacific, earlier this year outlined its plan to slash debt by $2.0 billion within 18 to 24 months. The company expects around $700 million of exploration and production asset sales to close before the end of the first quarter of 1999, with $368 million of that amount having already closed.
Union Pacific Resources [UPR] stock closed Friday up 9/16 at 13-1/4. Duke Energy stock [DUK] closed up 7/8 at 63 9/16
-- from staff and wire reports
|
|
|
|
|
 |
|
