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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report August 29, 1997 (Date of earliest event reported August 21, 1997)
EL PASO NATURAL GAS COMPANY
(Exact name of registrant as specified in the charter)
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Delaware 1-2700 74-0608280
(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
El Paso Energy Building
1001 Louisiana Street
Houston, Texas 77002
(Address of principal executive offices) (Zip Code)
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Registrant's telephone number, including area code (713) 757-2131
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Item 5. Other Events
On August 21, 1997, El Paso Natural Gas Company (the "Company"),
now doing business as El Paso Energy Corporation, entered into a
definitive merger agreement which provides for the acquisition by
the Company of all the outstanding shares of common stock of Gulf
States Gas Pipeline Company ("Gulf States") through a merger of
Gulf States into a subsidiary of the Company. The net purchase
price is approximately $39 million, and the transaction is
expected to close in September 1997, following the satisfaction of
several conditions, including the receipt of certain governmental
approvals.
A copy of the press release further describing the transaction is
attached hereto as Exhibit 99 and is incorporated herein by
reference.
Item 7. Financial Statements and Exhibits
c) Exhibits:
Exhibit Number Description
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99 Press release dated August 21, 1997
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
EL PASO NATURAL GAS COMPANY
By: /s/ Jeffrey I. Beason
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Jeffrey I. Beason
Vice President and Controller
Date: August 29, 1997
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EL PASO NATURAL GAS COMPANY
EXHIBIT INDEX
to
FORM 8-K CURRENT REPORT
Date of Report: August 29, 1997
Exhibit
Number Description
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99 Press release dated August 21, 1997.
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[LETTERHEAD]
EL PASO ENERGY CORPORATION ACQUIRES
GULF STATES PIPELINE COMPANY
HOUSTON, TEXAS, AUGUST 21, 1997 -- El Paso Energy Corporation (NYSE:EPG)
announced today the execution of a definitive merger agreement to acquire all of
the stock of Gulf States Gas Pipeline Company. The net purchase price of the
transaction is approximately $39 million and is expected to close in September
1997 following the satisfaction of several conditions, such as the receipt of
governmental approvals. At closing, Gulf States will become a part of El Paso
Field Services Company, a business unit of El Paso Energy Corporation.
Gulf States' principal asset is a 250 MMcf/d, 175-mile gathering and
transmission system in Northwest Louisiana. Gulf States also owns and operates a
10-mile interstate pipeline in East Texas with the ability to transport up to 75
MMcf/d from a processing plant in the Cotton Valley Pinnacle Reef area of East
Texas to Gulf States' Louisiana intrastate pipeline. Gulf States' main
transmission system extends 90 miles from near Waskom, Texas to Ruston,
Louisiana, and interconnects with Tennessee Gas Pipeline, Southern Natural Gas,
Texas Gas Gathering Company, Koch Gateway Pipeline, Texas Eastern Transmission,
and Crosstex Pipeline. Current transported volumes through the system are
approximately 105 MMcf/d.
The acquisition will provide El Paso Field Services Company with an
expansion of its assets in the northern Louisiana area which include the Dubach,
Calhoun and Lisbon processing plants (the "Dubach Complex") with a combined
capacity of 155 MMcf/d and an associated 500 mile gathering system.
"This acquisition provides significant operational synergies between Gulf
States, the Dubach Complex and Tennessee Gas Pipeline's mainline transmission
and storage facilities located in northern Louisiana," said Robert G. Phillips,
president of El Paso Field Services. "Additionally, it offers solid gathering
and processing opportunities in an active drilling area and increases market
options for producers developing new Pinnacle Reef reserves in East Texas. By
increasing the scope of our assets in this area, El Paso Field Services can
offer improved services to our producers through integrated gathering,
processing, storage and transmission."
El Paso Energy Corporation provides total energy solutions through five
business units: El Paso Natural Gas Company, Tennessee Gas Pipeline Company, El
Paso Field Services Company, El Paso Energy Marketing Company and El Paso
International Company. With offices worldwide, the Company has operations in
interstate natural gas transmission, gas gathering and processing, energy
marketing and international infrastructure development.
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Contacts:
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Media Relations: Russ Roberts
(713) 757-5435
Investor Relations: Scott Vonderheide
(713) 757-4527
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