News Release
Jan. 05, 2000


DENVER—Duke Energy Field Services (DEFS) announces its intention to acquire midstream natural gas gathering and processing assets in central Oklahoma from Conoco Inc. and Mitchell Energy & Development Corp. The purchase is expected to close in the first quarter of 2000, pending regulatory review.

"These midstream assets are strategic and complementary to existing DEFS assets in Oklahoma," said Jim W. Mogg, president and chief executive officer of DEFS. "They fit into our long-term strategy of being a top-tier gathering and processing company in the mid-continent area.

"Also, these central Oklahoma facilities will become part of the recently announced DEFS and Phillips’ GPM combination. The assets lie adjacent to and between our existing and future systems, providing additional integration opportunities. The resulting efficiencies and cost-effective services will create significant benefits," Mogg continued.

DEFS would obtain 100 percent ownership interest of five low-pressure gathering systems and six cryogenic plants having 2,300 miles of gathering pipe in the Goldsby, Cashion/ Mustang, Carney and Hennessey systems and 42 percent of the Dover Hennessey system operated by ExxonMobil. DEFS will operate all facilities with the exception of Dover Hennessey, which will continue to be operated by ExxonMobil. The proposed transaction calls for Duke Energy Field Services’ purchase of Conoco’s interests in the Oklahoma assets for an undisclosed price and an exchange of Mitchell’s interests in the Oklahoma assets for DEFS’ interests in the UP Bryan Plant, Ferguson Burleson and Austin Chalk natural gas gathering and processing systems located in central Texas.

DEFS is the largest U.S. producer of natural gas liquids (NGLs), one of the largest natural gas gatherers and marketers and one of the largest NGL marketers. In 1999, DEFS became the industry’s top NGL producer by acquiring UPR’s natural gas gathering, processing, fractionation and NGL pipelines for $1.35 billion. The recently announced DEFS and Phillips’ GPM combination will result in an enterprise with an expected value of between $5 billion and $6 billion.

Duke Energy (NYSE:DUK) is a global energy company with more than $29 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:

Contact: Liz Johnson
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