<PAGE> 1
EXHIBIT 99-1
PRESS RELEASE
HERITAGE PROPANE TRANSACTION WITH US PROPANE CLOSES
TULSA, OKLAHOMA AUGUST 10, 2000
--------------------------------------------------------------------------------
HERITAGE PROPANE PARTNERS, L.P. (NYSE:HPG) announced today that its previously
announced transaction with U.S. Propane closed today. The combination of the two
companies creates the nation's fourth largest retail propane marketer which will
distribute over 300 million retail gallons per year through 250 locations in 28
states.
"This is an exciting and unprecedented transaction", said H. Michael Krimbill,
Chief Executive Officer of Heritage Holdings, Inc., the General Partner of
Heritage Propane Partners. "Not only have we combined five operations that were
very successful in their own right, we have established a platform for
significant future growth, both internally and through a continued aggressive,
but focused acquisition program. This will be made possible because we have
retained the entire Heritage management team and strengthened it by the addition
of Larry Dagley to that team as Chief Financial Officer."
In a series of transactions, Heritage Propane Partners, L.P. purchased the
assets of U.S. Propane, L.P. for cash and limited partner units valued at $181
million. U.S. Propane purchased the stock of Heritage Holdings, Inc., the
General Partner of Heritage Propane Partners, L.P. for $120 million cash, of
which, approximately, $50 million was then reinvested by the former shareholders
of the General Partner in HPG Common and Subordinated Units.
U.S. Propane combined the propane operations of AGL Resources (NYSE:ATG), Atmos
Energy Corporation (NYSE ATO), Piedmont Natural Gas Co., Inc. (NYSE:PNY), and
TECO Energy, Inc. (NYSE:TE).
Glaucon Capital Partners, L.L.C. acted as debt placement agent to Heritage
Propane Partners, L.P.
Contact: H. Michael Krimbill
918-492-7272
Press/USPropaneMerger.pjb
