News Release
Jan. 04, 2001

DUKE ENERGY FIELD SERVICES FURTHERS GROWTH STRATEGY WITH YEAR-END TRANSACTIONS

DENVER -- Duke Energy Field Services (DEFS) continued to grow its leading natural gas gathering and processing position with the close of three year-end transactions. DEFS finalized the sale of $91 million in pipeline assets to TEPPCO Crude Pipeline, L.P. and purchased certain assets from El Paso Field Services Company for an undisclosed sum.

The natural gas liquids (NGL) pipeline assets sold to TEPPCO include the Panola Pipeline and the San Jacinto Pipeline. TEPPCO also will assume the lease of a 34-mile condensate pipeline. All three pipelines originate at DEFS’ East Texas Plant Complex in Panola County, Texas.

"This sale underscores our strategy of growing earnings through our TEPPCO master limited partnership," said Jim Mogg, president, chairman and chief executive officer of DEFS. "In 2000, we almost doubled the distribution that DEFS received as the general partner of TEPPCO Partners, L.P., and at the same time increased the distribution to limited partnership unitholders."

In a second transaction, DEFS on Dec. 28, 2000, finalized its purchase of 100 percent of the common stock of Gas Transmission Teco, Inc., which owns interests in the 500-mile Teco intrastate natural gas pipeline in Texas. DEFS purchased the company from El Paso Field Services Company. Terms were not disclosed.

The Teco assets include a 50-percent interest in the El Paso-operated West Texas Line (Waha to New Braunfels), 100 percent of the Guadalupe Line (New Braunfels to Dewville), a 50-percent, non-operated interest in the MidTex Line (Dewville to Katy), several supply lines and associated assets. Combined, these lines have a capacity of 250 million cubic feet per day of natural gas (MMcf/day) extending from Waha in West Texas to Katy, Texas, near Houston. They provide DEFS with critical interconnects to serve diverse market needs in the western United States as well as the Gulf Coast. The lines interconnect five DEFS plants with a combined processing capacity of 640 MMcf/day.

"The timely addition of this strategic system provides DEFS with increased marketing opportunities for the gas from these plants," said Mogg. "The lines also allow DEFS new access to the growing San Antonio/Austin corridor."

Lastly, in a separate transaction DEFS acquired El Paso Field Services’ 50-percent interest in the 265-mile San Jacinto natural gas pipeline, bringing its ownership to 100 percent. This DEFS-operated pipeline provides natural gas gathering and transportation services including delivery to one third party and two DEFS gas processing plants along the Texas Gulf Coast. Terms were not disclosed.

COMPANY INFORMATION

TEPPCO Partners, L.P. is a publicly traded master limited partnership, which conducts business through various subsidiary operating companies. TEPPCO owns and operates one of the largest common carrier pipelines of refined petroleum products and liquefied petroleum gases in the United States; is engaged in crude oil gathering, transportation, storage and marketing; and owns a 50-percent interest in Seaway Crude Pipeline Company and an undivided ownership interest in the Rancho and Basin Pipelines. Texas Eastern Products Pipeline Company, LLC, a direct wholly owned subsidiary of Duke Energy Field Services, LP, is the general partner of TEPPCO Partners, L.P. For more information, access TEPPCO’s website at www.teppco.com.

DEFS, headquartered in Denver, Colo., is a midstream energy company that gathers, processes, transports, markets and stores natural gas and produces, transports and markets natural gas liquids (NGLs). The company is one of the nation’s largest natural gas gatherers, the largest producer of NGLs and one of the largest NGL marketers. DEFS operates in 11 states and across five of the largest natural gas producing regions in North America. The company owns and operates 71 plants and 57,000 miles of pipeline, and its operating territory extends from western Canada to the Gulf Coast.

DEFS was formed by combining the Duke Energy and Phillips Petroleum natural gas gathering and processing businesses. Duke Energy owns approximately 70 percent of the joint venture and Phillips Petroleum owns about 30 percent. More information is available about the company at www.defs.com.

Phillips Petroleum is an integrated petroleum company with interests around the world. Founded in Bartlesville, Okla., in 1917, the company had, as of Sept. 30, 2000, $21 billion of assets and annualized revenues of $21 billion.

Duke Energy, a diversified multinational 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: Liz Johnson
Phone: 713/627-5011
24 Hour Phone: 704/382-8333
Email: evjohnson@duke-energy.com