News Release
April 03, 2003

DUKE ENERGY WILL REALIZE PROCEEDS OF $99.5 MILLION FROM MONETIZATION OF TEPPCO CLASS B UNITS

CHARLOTTE, N.C. – Duke Energy announced today that the recently priced offering by TEPPCO Partners, L.P. of approximately 3.4 million units will result in proceeds to Duke Energy of approximately $99.5 million, as TEPPCO purchases the Class B units held by Duke Energy’s wholly owned subsidiary, Duke Energy Transport and Trading Company, LLC (DETTCO). The transaction is expected to close on April 8.

 

TEPPCO has also granted the underwriters a 30-day option to purchase up to an additional 513,750 units. If that option is exercised for at least 491,547 of the additional units, Duke Energy expects to receive additional proceeds of approximately $14 million.

 

Texas Eastern Products Pipeline Company, LLC, an indirect wholly owned subsidiary of Duke Energy Field Services, LLC, (DEFS) serves as the general partner of TEPPCO. DEFS is a joint venture company approximately 70 percent owned by Duke Energy and approximately 30 percent owned by ConocoPhillips.

 

Duke Energy will continue to hold its 2.5 million limited partner units, plus a general partner interest in TEPPCO through DEFS.

 

“The decision to monetize our investment in TEPPCO Class B units represents another execution of our portfolio management strategy, which seeks to allocate capital in the best interests of Duke Energy shareholders,” said Richard B. Priory, chairman and chief executive officer. “We have already announced or closed on deals that surpass our 2003 goal of obtaining more than $600 million in cash proceeds from the sale of non-strategic assets. The proceeds from this transaction will be used to further strengthen our balance sheet by paying off debt.”             

 

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; owns and operates petrochemical and natural gas liquids pipelines; is engaged in crude oil transportation, storage, gathering and marketing; owns and operates natural gas gathering systems; and owns a 50-percent interest in Seaway Crude Pipeline Company, a 50-percent interest in Centennial Pipeline LLC, and an undivided ownership interest in the Basin pipeline. Texas Eastern Products Pipeline Company, LLC, an indirect wholly owned subsidiary of Duke Energy Field Services, LLC, is the general partner of TEPPCO Partners, L.P. For more information, visit TEPPCO's Web site at www.teppco.com.

 

Duke Energy is a diversified multinational energy company with an integrated network of energy assets and expertise. The company manages a dynamic portfolio of natural gas and electric supply, delivery and trading businesses – meeting the energy needs of customers throughout North America and in key markets around the world. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 500 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.

 

This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although Duke Energy believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include legislative and regulatory developments; the outcomes of litigation and regulatory proceedings or inquiries; the effectiveness of the company's risk management and internal controls systems; the timing and extent of changes in commodity prices for oil, gas, coal, electricity and interest rates; the extent of success in connecting natural gas supplies to gathering and processing systems and in connecting and expanding gas and electric markets; the performance of electric generation, pipeline and gas processing facilities; the timing and success of efforts to develop domestic and international power, pipeline, gathering, processing and other infrastructure projects; conditions of the capital markets and equity markets during the periods covered by the forward-looking statements; and other factors discussed in Duke Energy's filings with the Securities and Exchange Commission.

 

Contact: Terry Francisco
Phone: 704/373-6680
24 Hour Phone: 704/382-8333
Email: thfrancisco@duke-energy.com