News Release
Feb. 22, 1999

FEDERAL TRADE COMMISSION CLEARS DUKE ENERGY’S PURCHASE OF UNION PACIFIC RESOURCES MIDSTREAM GAS BUSINESS

DENVER The Federal Trade Commission has cleared the previously announced sale of Union Pacific Resources’ (UPR) midstream natural gas business to Duke Energy Field Services Inc.

Duke Energy and UPR announced the $1.35 billion purchase/sale agreement Nov. 22, 1998.With the recent expiration of the waiting period required by the Hart-Scott-Rodino Antitrust Improvements Act, the parties expect the deal to close March 31.

Under the agreement, Duke Energy will purchase UPR’s natural gas gathering, processing, fractionation and natural gas liquids (NGL) pipeline business as well as UPR’s natural gas and NGL marketing activities. Combined with current assets, these assets will make Duke Energy the nation’s largest producer of NGLs with production in excess of 200,000 barrels per day.

Union Pacific Resources is one of the nation’s largest independent oil and gas exploration and production companies. Based in Fort Worth, Texas, UPR has been the number one domestic driller for the past seven years and was the number one gas producer in the state of Texas in 1997.

Duke Energy Field Services Inc., with about 250 employees in its Denver headquarters, is one of the nation’s largest gatherers and processors of natural gas and one of the largest marketers of natural gas liquids. The company also provides intrastate natural gas transportation and storage, and financial services for producers.

Duke Energy Corporation (NYSE:DUK) is a global energy company with more than $26 billion in assets. Headquartered in Charlotte, N.C., the company reaches into more than 50 countries, producing energy, transporting energy, marketing energy and providing energy services. In the United States, Duke Energy companies provide electric service to approximately two million customers in North Carolina and South Carolina; operate interstate pipelines that deliver natural gas to various regions of the country; and are leading marketers of electricity, natural gas and natural gas liquids. Additional information about the company is available on the Internet at: www.duke-energy.com.

Contact: John P. Barnett
Phone: (713) 627-4072
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com
Contact: Daniel J. Sullivan
Phone: (817) 321-6527
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com