News Release
May 03, 2004

DUKE ENERGY FIELD SERVICES ENHANCES POSITION IN SOUTHEAST NEW MEXICO WITH ACQUISITION OF CONOCOPHILLIPS ASSETS

DENVER -- Duke Energy Field Services (DEFS) today announced the closing of an acquisition of certain gathering, processing and transmission assets in southeast New Mexico from ConocoPhillips for approximately $74 million. 

The assets acquired by DEFS include the Hobbs, Antelope Ridge and Zia processing plants with total capacity of 112 MMcf per day, over 1,000 miles of gathering pipeline and associated compression, plus the 75-mile Raptor intrastate pipeline system.

"These assets acquired from ConocoPhillips allow DEFS to capture synergies from our existing asset base in southeast New Mexico,” said Bill Easter, chairman, president and chief executive officer of DEFS. “They will further enhance our ability to gather and process all types of gas, improve system flexibility and increase service offerings for our customers."

Duke Energy Field Services (DEFS) is a premier North American midstream energy company that leads or is among the nation's leaders in the gathering, compression, treating and processing of natural gas; and fractionation, transportation, marketing and trading of NGLs. Other services include the transportation, marketing and storage of natural gas. DEFS operates in 16 states and two 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 56 plants and 58,000 miles of pipeline. Current handled volumes are 7.7 TBtu/d of natural gas and 367,000 Bbls/d of NGLs. DEFS owns the general partner of TEPPCO Partners L.P., a publicly traded master limited partnership primarily engaged in the transportation of petroleum products.

DEFS was formed by combining the Duke Energy and ConocoPhillips Petroleum 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.

Contact: Tom Long
Phone: 303/605-1731
24-Hour Phone: 704/382-8333
e-mail: telong@duke-energy.com