Dynegy Inc. (ticker: DYN, exchange: New York Stock Exchange (.N))
News Release -
Dynegy Provides Update on Sales of Non-Core Generation Assets
HOUSTON--(BUSINESS WIRE)--July 21, 2004--Dynegy Inc. (NYSE:DYN)
-- Company signs agreement to sell 50 percent ownership of
Hartwell Power Generation Facility
-- Sale of interest in Oyster Creek completed
-- Dynegy provides update on sale of interest in Michigan Power
Dynegy Inc. (NYSE:DYN) today announced that it has signed an
agreement to sell its 50 percent ownership of the Hartwell Power
Generation Facility in Hartwell, Ga., to Centennial Power, Inc., an
indirect wholly owned subsidiary of MDU Resources Group, Inc. Terms of
the sale of the 310-megawatt, natural gas-fired peaking facility were
not disclosed. The sale, which is expected to close late in the third
quarter or early in the fourth quarter 2004, is subject to the receipt
of required lender consents, as well as approval by the Federal Energy
"Today's announcement of the pending sale of our ownership in the
Hartwell facility represents continued progress in the divestiture of
non-core energy assets," said Bruce A. Williamson, Chairman, President
and Chief Executive Officer of Dynegy Inc. "These transactions further
clarify our business strategy of focusing on our ongoing Power
Generation and Natural Gas Liquids businesses where we believe we have
strategic advantages and opportunities for growth."
Williamson added that with the agreement to sell the Hartwell
facility, the company remains on target to generate approximately $170
million in proceeds in connection with the sale of non-core generation
assets in 2004.
The company also announced the completion of the sale of its 50
percent interest in the 424-megawatt Oyster Creek natural gas-fired
qualifying facility (QF), located near Freeport, Texas, to GE
Commercial Finance's Energy Financial Services unit. The sale
generated proceeds of approximately $79 million, resulting in a
pre-tax gain of approximately $15 million.
In addition, the company is selling its 50 percent interest in the
123-megawatt Michigan Power natural gas-fired QF located near
Ludington, Mich. Terms of the sales agreement have not been disclosed.
The sale is expected to close during the next several weeks, subject
to the receipt of required lender consents.
Dynegy's ongoing power generation business consists of a
geographically diverse fleet of baseload, intermediate and peaking
power plants fueled by a mix of coal, fuel oil and natural gas.
Located in 12 U.S. states, the portfolio is well-positioned to
capitalize on regional differences in power prices and weather-driven
demand. The power generation business also manages commodity price
risk associated with fuel procurement and trades around its assets to
deliver products and services to the nation's wholesale energy system.
Dynegy Inc. provides electricity, natural gas and natural gas
liquids to customers throughout the United States. Through its energy
businesses, the company owns and operates a diverse portfolio of
assets, including power plants totaling more than 12,700 megawatts of
net generating capacity, gas processing plants that process
approximately 1.8 billion cubic feet of natural gas per day and nearly
38,000 miles of electric transmission and distribution lines.
Certain statements included in this news release are intended as
"forward-looking statements." These statements include assumptions,
expectations, predictions, intentions or beliefs about future events,
particularly the company's ability to consummate the agreed sales of
non-core assets in its power generation business. Dynegy cautions that
actual future results may vary materially from those expressed or
implied in any forward-looking statements. Some of the key factors
that could cause actual results to vary materially from those expected
include the receipt of required lender consents and regulatory
approvals. More information about the risks and uncertainties relating
to these forward-looking statements are found in Dynegy's SEC filings,
including its Annual Report on Form 10-K for the year ended Dec. 31,
2003, as amended, and its Quarterly Report on Form 10-Q for the
quarter ended March 31, 2004, as amended, which are available free of
charge on the SEC's web site at http://www.sec.gov.
CONTACT: Dynegy Inc., Houston
John Sousa or David Byford, 713-767-5800
Peter Wilt, Norelle Lundy
or Hillarie Bloxom, 713-507-6466
SOURCE: Dynegy Inc.