News Release
July 18, 2001

DUKE ENERGY FIELD SERVICES ENHANCES POSITION IN GULF NATURAL GAS GATHERING, PROCESSING AND RELATED ASSETS

DENVER -- Duke Energy Field Services (DEFS) has significantly increased its midstream presence in the Gulf of Mexico with the purchase of the former MCN Investment Corporation's ownership interest in Dauphin Island Gathering Partners (DIGP), Mobile Bay Processing Partners (MBPP) and Gulf Coast NGL Pipeline, L.L.C. (Gulf Coast). Terms were not disclosed.

DEFS is the owner and managing partner of DIGP and MBPP and is the managing member of Gulf Coast. With the ownership interest purchase, DEFS' interest in DIGP increased from 37.3 percent to 71.8 percent; in MBPP from 28.8 percent to 57.6 percent; and in Gulf Coast from 28.9 percent to 57.9 percent. The transaction closed on July 11.

DIGP, MBPP and Gulf Coast are integrated midstream facilities designed to gather, transport and process natural gas produced in the Gulf of Mexico off the coasts of Louisiana, Mississippi and Alabama. The natural gas is delivered to interstate natural gas pipelines that serve end user markets and power plants in growing areas throughout the northeastern and southeastern United States. Natural gas liquids extracted from the natural gas stream at MBPP's Coden, Ala., facility are transported to Louisiana fractionation facilities via pipelines partially owned by Gulf Coast.

"This timely acquisition greatly enhances our corporate growth strategy in the eastern Gulf, which is one of the most active offshore exploration and development areas in the Gulf of Mexico," said Mark Borer, senior vice president of DEFS. "The eastern Gulf will be a critical natural gas supply basin for the growing Southeast area power plant markets in Florida, Alabama and Georgia."

"The former MCN Investment Corporation became a DTE Energy asset with the merger of MCN Energy and DTE Energy on May 31," said David E. Meador, DTE Energy senior vice president and chief financial officer. "Divestiture of specific assets such as this are in line with DTE Energy’s effort to divest non-core assets that do not integrate with DTE Energy’s long-term strategy."

DTE Energy is a Detroit-based diversified energy company involved in the development and management of energy related businesses and services nationwide. DTE Energy’s principal operating subsidiaries are Detroit Edison, an electric utility serving 2.1 million customers in Southeastern Michigan, and Michigan Consolidated Gas, serving 1.2 million customers in Michigan. Information about DTE Energy is available at http://www.dteenergy.com.

DEFS is a premier North American midstream energy company that leads or is among the nation’s leaders in the gathering, processing, transportation, marketing and storage of natural gas and the production, transportation and marketing of natural gas liquids (NGLs). DEFS’ 2,600 employees operate in 11 states and across five of the largest natural gas producing regions in North America, extending from western Canada to the Gulf Coast. The company owns and operates 65 plants and 57,000 miles of pipeline. The Denver-based company had revenues of $9.1 billion and assets of $6.1 billion in 2000. DEFS also owns the general partner of TEPPCO Partners, L.P., a publicly traded master limited partnership.

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 is an integrated petroleum company with interests around the world. Headquartered in Bartlesville, Oklahoma, the company has 12,400 employees and $20.5 billion of assets, and had $21.2 billion of revenues in 2000.

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 more than $49 billion in 2000. 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: Tom Long
Phone: 303/605-1731
24 Hour Phone: 704/382-8333
Email: telong@duke-energy.com