Dynegy Inc. (ticker: DYN, exchange: New York Stock Exchange (.N))
News Release -
Dynegy Inc. Continues Restructuring and Rationalization of Non-Strategic Assets; Interest in the Roberts Ranch Natural Gas Liquids Plant Sold to DukeHOUSTON--(BUSINESS WIRE)--July 27, 1998--Dynegy Inc. (NYSE:DYN) today announced that it has entered into an agreement to sell its 56 percent interest in the Roberts Ranch natural gas processing plant in Midland County, Texas to Duke Energy Field Services, Inc. Combined with the previously announced proposed sale of Dynegy's crude oil trading and transportation business, the sale of the Ozark pipeline and other natural gas liquids processing plants, the divestiture of this non-strategic asset continues a planned restructuring and provides capital to continue the growth of Dynegy's core businesses of natural gas and power.
"Dynegy's restructuring plans are moving forward at an aggressive pace allowing us to meet our corporate strategy of redeploying capital into power generation assets. To take advantage of the tremendous growth opportunities in this business we are divesting of assets that have a greater strategic value to others in the industry than to us. Dynegy's crude oil trading and transportation business and the Ozark pipeline have positively contributed to the financial performance of the company. Our decision to sell these businesses and reduce our investments in liquids assets is driven by our desire to focus on and synergistically build our core operations," said Chuck Watson, chief executive officer of Dynegy Inc.
In 1996, Dynegy operated 41 plants and had joint venture interests in 16 additional plants. A rationalization of this business was undertaken in order to achieve greater operating efficiencies and lower costs by focusing in core areas.
When the sale of this interest in the Roberts Ranch Plant is completed, the company operates 33 facilities and has interests in 11 others. As the number of Dynegy operated facilities has been reduced, plant utilization and the gas volume processed has increased and operating expenses have been significantly reduced.
The Roberts Ranch gas processing plant is designed with a capacity to process 85 million cubic feet per day of natural gas. Included with the plant is a low-pressure gathering system extending five miles south and five miles north of the plant and extending into Ector County. The plant is located approximately 10 miles north of Duke Energy's Pegasus Gas Plant and five miles west of Duke Energy's Parks Booster Station in Midland County.
Previously, Dynegy signed a letter of intent to sell its U.S.-based crude oil transportation and marketing operations to Duke Energy Transport and Trading Company, a subsidiary of Field Services.
Dynegy Inc., (formerly NGC Corporation) is one of the leading marketers of energy products and services in North America. The name Dynegy reflects the company's evolution from a natural gas marketing company to a dynamic energy company with a full energy network to meet the growing challenges of the energy market of the future. Through its leadership position in gathering, processing, transportation, independent power generation and marketing of energy, the company provides energy solutions to its customers in North America, the United Kingdom, Colombia and Australia.
Duke Energy (NYSE:DUK) is a global energy company with more than $24 billion in assets. Duke Energy companies provide electric service to approximately 2 million customers; operate pipelines that deliver 12 percent of the natural gas consumed in the United States; and are leading marketers of electricity, natural gas and natural gas liquids. Globally the companies develop, own and operate energy facilities and provide engineering, management, operating and environmental services.