EL PASO FIELD SERVICES COMPANY COMPLETES PURCHASE OF
PG&E CORPORATION'S TEXAS MIDSTREAM BUSINESSES
HOUSTON, TEXAS, DECEMBER 22, 2000-El Paso Field Services Company, a
business unit of El Paso Energy Corporation (NYSE:EPG), announced
today that it has completed its purchase of the natural gas and
natural gas liquids businesses of PG&E Gas Transmission, Texas
Corporation and PG&E Gas Transmission Teco, Inc. for $840 million,
including assumed debt of approximately $561 million. This
announcement follows the approval of a consent agreement by the
Federal Trade Commission and the Texas Attorney General.
Through the transaction, El Paso Field Services acquires 8,500
miles of natural gas transmission pipelines that transport
approximately 2.8 billion cubic feet per day (Bcf/d), nine natural
gas processing plants that currently process 1.5 Bcf/d, and a 7.2-
Bcf natural gas storage field. The assets serve all major
metropolitan areas in Texas, the largest industrial load centers,
and numerous natural gas trading hubs. They are also well
positioned to serve many of the state's existing and planned gas-
fired electric generation facilities. The assets create a physical
link between the El Paso Natural Gas and Tennessee Gas Pipeline
systems, provide access to the prolific south Texas producing
region and significantly increase El Paso's midstream business.
"The strategic fit of these assets into El Paso's current
portfolio is excellent," said Robert G. Phillips, president of El
Paso Field Services. "This transaction provides Field Services
with significant pipeline and processing assets and a strong
employee group that combined with the substantial resources of
El Paso Energy will result in the most reliable, efficient services
to customers in Texas. We believe that the end result will be a
midstream services provider with a strong Texas presence that will
offer superior customer service including more flexible value
delivery. Our commitment to the midstream is stronger than ever."
Regarding the close of El Paso Energy's merger with The
Coastal Corporation, El Paso and Coastal have signed an agreement
containing consent order that has been negotiated with the staff of
the Federal Trade Commission. Approval by the Commission and
closing of the merger is expected shortly.
With over $21 billion in assets, El Paso Energy Corporation is
one of the largest integrated natural gas-to-power companies in the
world. El Paso Energy not only owns North America's largest
natural gas pipeline system, but also has growing operations in
merchant energy services, power generation, international project
development, gas gathering and processing, and gas and oil
production. On May 5, the stockholders of both El Paso Energy and
The Coastal Corporation overwhelmingly voted in favor of merging
the two organizations. Visit El Paso Energy's Web site at
www.epenergy.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This release includes forward-looking statements and
projections, made in reliance on the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. The company has
made every reasonable effort to ensure that the information and
assumptions on which these statements and projections are based are
current, reasonable, and complete. However, a variety of factors
could cause actual results to differ materially from the
projections, anticipated results or other expectations expressed in
this release. While the company makes these statements and
projections in good faith, neither the company nor its management
can guarantee that the anticipated future results will be achieved.
Reference should be made to the company's (and its affiliates')
Securities and Exchange Commission filings for additional important
factors that may affect actual results.
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Contacts:
Public Relations Investor Relations
Norma F. Dunn Bruce L. Connery
Senior Vice President Vice President
Office: (713) 420-3750 Office: (713) 420-5855
Fax: (713) 420-3632 Fax: (713) 420-4417
