DUKE ENERGY ANNOUNCES SALE OF FOOTHILLS PIPE LINES LTD. OWNERSHIP INTEREST
CHARLOTTE, N.C. – Duke Energy announced today that it has reached an agreement to sell its ownership interest in Foothills Pipe Lines Ltd. to TransCanada PipeLines Limited for $177 million (Cdn$257 million), including $105 million (Cdn$152 million) of Duke Energy’s proportionate share of Foothills Pipe Lines Ltd. debt. The cash proceeds from the transaction, net of debt, amount to $72 million (Cdn$105 million) for Duke Energy.
The sale, subject to necessary regulatory approvals, is expected to close in third quarter 2003.
Duke Energy has a non-controlling interest in the current physical and financial operations of Foothills Pipe Lines, which was acquired in 2002 as a result of Duke Energy’s acquisition of Westcoast Energy.
Foothills’ current pipeline system extends more than 1,000 kilometers, or more than 647 miles, across
"The sale of our interest in Foothills Pipe Lines Ltd. is consistent with our overall North American portfolio management strategy," said Richard B. Priory, chairman and chief executive officer of Duke Energy. "This transaction, along with our previously announced asset sales this year, will put us closer to our goal of approximately $1.5 billion in gross proceeds from asset sales for 2003."
“Our North American pipeline presence remains very strong,” said Tom O'Connor, president of Duke Energy Gas Transmission. “We’re fully focused in
Duke Energy Gas Transmission is a North American leader in developing energy infrastructure and connecting major natural gas supply basins to growing markets. The company’s natural gas operations include more than 18,000 miles of interstate transmission pipeline and 250 billion cubic feet of storage capacity in
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
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.