DUKE ENERGY COMPLETES ACQUISITION OF CONOCOPHILLIPS' INTEREST IN EMPRESS SYSTEM - Duke Energy

News Release
August 02, 2005

DUKE ENERGY COMPLETES ACQUISITION OF CONOCOPHILLIPS' INTEREST IN EMPRESS SYSTEM

CHARLOTTE, N.C. – Duke Energy has completed its acquisition of ConocoPhillips’ interest in the Empress System for approximately $230 million. The assets will be transferred into Duke Energy Gas Transmission’s (DEGT) western Canadian operations.

Originally envisioned as part of a 50-50 restructuring of Duke Energy’s and ConocoPhillips’ ownership interest in Duke Energy Field Services LLC (DEFS), the transfer of the Empress assets had been delayed pending damage repairs to the asset from a windstorm.

“The Empress assets are an excellent strategic fit with DEGT’s existing operations in western Canada,” said Martha Wyrsch, president and chief executive officer of DEGT. “These assets position us well for future growth in the region.”

The Empress System assets include natural gas liquids extraction and fractionation facilities in Alberta and related liquids transportation and storage operations. 

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 17,500 miles of transmission pipeline and 250 billion cubic feet of storage capacity in Canada and the United States. More information on DEGT can be found at: http://www.duke-energy.com/businesses/companies/degt.asp.

Duke Energy is a diversified energy company with a portfolio of natural gas and electric businesses, both regulated and unregulated, and an affiliated real estate company. Duke Energy supplies, delivers and processes energy for customers in the Americas. Headquartered in Charlotte, N.C., Duke Energy 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: http://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 could cause actual results to differ materially from those in the forward-looking statements herein are discussed in Duke Energy’s 2004 Form 10-K and other filings with the Securities and Exchange Commission. 

Contact: MEDIA CONTACT: Peter Sheffield
Phone: 980/373-4503
24-Hour Phone: 704/382-8333
e-mail: pvsheffield@duke-energy.com
Contact: ANALYST CONTACT: Julie Dill
Phone: 980/373-4332
24-Hour Phone: n/a
e-mail: jadill@duke-energy.com