News Release
May 25, 2000

DUKE ENERGY FIELD SERVICES IPO POSTPONED

DENVER -- Duke Energy Field Services (DEFS), a wholly owned subsidiary of Duke Energy Corporation and Phillips Petroleum Company, announced today it has postponed the initial public offering of common shares of the company due to volatile market conditions.

Shares of DEFS, one of the nation's largest natural gas gatherers, and one of the largest producers and marketers of natural gas liquids, will be offered to the public when market conditions are more favorable. In the meantime, DEFS will continue to be owned 69.7 percent by Duke Energy and 30.3 percent by Phillips.

Phillips is an integrated petroleum company engaged in oil and gas exploration and production worldwide; gas gathering, processing and marketing in the United States; 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 had 15,900 employees and $15 billion of assets at the end of 1999, and $14 billion of revenues for the year. More information about the company is available on the Internet at www.phillips66.com.

DEFS, headquartered in Denver, Colo., is the nation's largest producer of natural gas liquids, one of the largest natural gas gatherers and marketers and one of the largest NGL marketers. The company operates in 11 states, including Wyoming, Colorado, Kansas, Oklahoma, New Mexico, Texas, Louisiana, Alabama and Mississippi, and along the Gulf Coast and in northwestern Alberta, Canada. DEFS now owns and operates 70 plants and 57,000 miles of pipeline.

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 the company is available on the Internet at: www.duke-energy.com.

Contact: Cathy Roche
Phone: 704-373-4860
24 Hour Phone: 704-382-8333
Email: csroche@duke-energy.com
Contact: Kristi DesJarlais
Phone: 918-661-6117
24 Hour Phone: 704-382-8333
Email: media_relations@duke-energy.com