News Release
July 27, 1998

DUKE ENERGY FIELD SERVICES BUYS DYNEGY’S INTEREST IN TEXAS GAS PLANT

HOUSTON - - Duke Energy Field Services, Inc. plans to increase its gas processing and gathering services capabilities in Texas with the proposed acquisition of all of Dynegy’s 56 percent interest in the Roberts Ranch natural gas processing plant in Midland County from Dynegy Midstream Services, Limited Partnership.

The gas processing plant has the capacity to process 85 million cubic feet per day of natural gas. Included with the plant is a low-pressure gathering system extending five miles south and five miles north of the plant and extending into Ector County. The plant is located approximately 10 miles north of Duke Energy’s Pegasus Gas Plant and five miles west of Duke Energy’s Parks Booster Station in Midland County.

"The acquisition of these facilities fits well with our existing gathering and processing business in this area," said Jim Mogg, president. "Duke Energy Field Services has expanded significantly this year and plans to continue that growth."

In addition, Duke Energy Transport and Trading Company, a subsidiary of Field Services, signed a letter of intent to buy Dynegy’s U.S-based crude oil transportation and marketing operations.

Duke Energy Field Services gathers and processes natural gas and is the nation’s fourth largest producer and a leading marketer of natural gas liquids. The company also provides intrastate natural gas transportation and storage, and financial services for producers.

Dynegy Inc. (NYSE:DYN), formerly NGC Corporation, is one of the leading marketers of energy products and services in North America. The name Dynegy reflects the company’s evolution from a natural gas marketing company to a dynamic energy company with a full energy network to meet the growing challenges of the energy market of the future. Through its leadership position in gathering, processing, transportation, independent power generation and marketing of energy, the company provides energy solutions to its customers in North America, the United Kingdom, Colombia and Australia.

Duke Energy (NYSE:DUK) is a global energy company with more than $24 billion in assets. Duke Energy companies provide electric service to approximately 2 million customers; operate pipelines that deliver 12 percent of the natural gas consumed in the United States; and are leading marketers of electricity, natural gas and natural gas liquids. Globally the companies develop, own and operate energy facilities and provide engineering, management, operating and environmental services. Contact Duke Energy on the World Wide Web at http://www.duke-energy.com.

Contact: John P. Barnett
Phone: (713) 627-40 72
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com
Contact: Maripat Sexton
Phone: (713) 507-3936
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com