News Release
March 15, 2000


CHARLOTTE – Duke Energy announced that Duke Energy Field Services (DEFS), the company formed to combine the North American midstream natural gas businesses of Phillips Petroleum and Duke Energy, has filed a registration statement with the Securities and Exchange Commission to offer shares of its common stock. All of the shares sold in the offering will be sold by DEFS and the proceeds will be used to repay indebtedness incurred in connection with the combination.

Co-lead managers of the offering are Morgan Stanley Dean Witter and Merrill Lynch & Co. Additional underwriters are Banc of America Securities, L.L.C., Lehman Brothers, J.P. Morgan & Co., PaineWebber Incorporated and Petrie Parkman & Co. When available, copies of the preliminary prospectus may be obtained from Morgan Stanley Dean Witter at 1585 Broadway, New York, N.Y. 10036.

DEFS gathers and markets natural gas and produces and markets natural gas liquids (NGLs). The company operates 52 natural gas processing plants in Wyoming, Colorado, Kansas, Oklahoma, New Mexico, Texas, along the Gulf Coast and in northwestern Alberta, Canada. Phillips Petroleum’s NGL business, GPM Gas Corporation, has operated Phillips Petroleum’s gas gathering and processing units in the continental United States since 1992. GPM operates 15 plants in Texas, New Mexico and Oklahoma.

Phillips Petroleum is an integrated petroleum company engaged in oil and gas exploration and production worldwide; refining, marketing and transportation operations primarily in the United States; chemicals and plastics manufacturing and sales around the globe; and technology development. Founded in Bartlesville, Okla., in 1917, Phillips Petroleum has 16,200 employees, $15 billion of assets and $13 billion of revenues on an annual basis.

Duke Energy, a diversified multi-national energy company, creates value for customers and shareholders through an integrated network of energy assets and expertise. Duke Energy manages a dynamic portfolio of natural gas and electric supply, delivery and trading businesses generating revenues of nearly $22 billion in 1999. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 100 company traded on the New York Stock Exchange under the symbol DUK. More information about Duke Energy is available on the Internet at:

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. We may not sell these securities nor may offers to buy be accepted until the registration statement filed with the Securities and Exchange Commission becomes effective. This announcement is not an offer to sell these securities and we are not soliciting offers to buy these securities nor shall there be any sale of these securities in any state where the offer, solicitation or sale is not permitted prior to the registration or qualification under the laws of any such state.

Contact: Paul Mason
Phone: 704-373-4512
24 Hour Phone: 704-382-8333