News Release
May 02, 2003

DUKE ENERGY FIELD SERVICES SELLS ASSETS IN GULF COAST AND EASTERN OKLAHOMA AREAS

DENVER – Duke Energy Field Services (DEFS) today announced the signing of two separate purchase and sale agreements by which DEFS will sell one package of assets in Mississippi, Texas, Alabama and Louisiana to Crosstex Energy Services, L.P. (Crosstex); and a second package of assets in eastern Oklahoma to ScissorTail Energy, LLC (ScissorTail).

 

The assets to be sold to Crosstex are the AIM Pipeline System, a 12.4 percent interest in the Seminole gas processing plant, Conroe gas plant and gathering system, Black Warrior pipeline system and  two smaller systems - Aurora Centana and Cadeville.

 

The assets to be sold to ScissorTail consist of various gas processing plants and approximately 2,800 miles of gathering pipeline in eastern Oklahoma.

 

"These sales are consistent with our strategy to rationalize and optimize our asset base," said Jim Mogg, chairman, president and chief executive officer of DEFS. "The transactions, which total in excess of $90 million, were identified in our 2003 plan.”

 

The transactions are expected to close by June 30. The sale to Crosstex is subject to various regulatory approvals.  Proceeds from the sale will be used to pay down debt.

 

DEFS is a premier North American midstream company that leads or is among the nation’s leaders in the gathering and processing of natural gas, production, transportation and marketing of NGLs. Other services include transportation, marketing and storage of natural gas. DEFS has 2,700 employees and operates in 16 states and 2 provinces across the five largest natural gas producing regions in North America, extending from western Canada to the Gulf Coast. The Denver-based company owns and operates 60 plants, 60,500 miles of pipeline. Current handled volumes are 8 TBtu/d of natural gas and 400,000 Bbls/d of NGLs. 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 ConocoPhillips natural gas gathering and processing businesses. Duke Energy owns approximately 70 percent of the joint venture and ConocoPhillips owns about 30 percent. More information is available about the company at www.defs.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; general economic conditions, including any potential effects arising from terrorist attacks and any consequential hostilities or other hostilities; 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 natural gas and electric markets; the performance of electric generation, pipeline and natural 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: Tom Long
Phone: 303/605-1731
24 Hour Phone: 704/382-8333
Email: telong@duke-energy.com