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 (Date of earliest event reported):
August 28, 1997
TECO ENERGY, INC.
(Exact name of registrant as specified in its charter)
FLORIDA 1-8180 59-2052286
(State or other jurisdiction (Commission file (IRS Employer
of incorporation) Number) Identification No.)
702 North Franklin Street, Tampa Florida 33602
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (813) 228-4111
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Item 5. Other Events
See the Press Release dated August 28, 1997, filed as Exhibit 99.1 and
incorporated herein by reference, announcing TECO Energy s plan to sell its
conventionan oil and gas production business and a third quarter charge
relating to a group of nonproducing wells.
Item 7. Financial Statements and Exhibits
(C) Exhibits
99.1 Press Release dated August 28, 1997.
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SIGNATURE
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 hereunto duly authorized.
Dated: Aug. 28, 1997 TECO Energy, Inc.
By:/s/ A. D. Oak
A. D. Oak
Senior Vice President - Finance,
and Chief Financial Officer
(Principal Accounting Officer)
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INDEX TO EXHIBITS
Exhibit No. Description of Exhibits Page No.
99.1 Press Release dated August 28, 1997 5
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FOR IMMEDIATE RELEASE
Media Contact: Mike Mahoney Investors Contact: Mark Kane
Office: (813 228-4271 Office: (813) 228-1772
Home: (813) 991-6229 E-mail [email protected]
Internet: http://www.tecoenergy
TECO Energy Announces Plan to Sell its Conventional Oil and Gas
Production Business and a Third Quarter Charge relating to Three
Nonproducing Wells
TAMPA, August 28, 1997 - TECO Energy, Inc. (NYSE: TE) announced
today that it plans to sell its conventional oil and gas subsidiary,
TECO Oil & Gas. Since its formation in the second half of 1995, TECO
Oil & Gas has participated in joint ventures utilizing 3-D seismic
imaging in the exploration for gas and oil. It has acquired a portfolio
of interests in producing wells, discoveries not yet producing and lease
prospects in the shallow waters of the Gulf of Mexico and on shore in
Texas.
We have built good value in this business and expect the proceeds from
its sale to exceed the investment on our books, Timothy L. Guzzle,
chairman and chief executive officer said. Our decision to sell was
prompted by the small scale of our operations and the related earnings
volatility which does not fit well with our business objectives, he
added.
Guzzle also pointed out, We continue to be very pleased with the
performance of our coalbed methane gas production business, which has
consistently given us important earnings and excellent returns. In
addition, our recent acquisitions of the Peoples Gas and West Florida
Gas companies are providing us attractive opportunities for additional
investment in the downstream gas distribution business.
-more-
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TECO Energy also announced in connection with TECO Oil & Gas that the
previously reported mitigation efforts on the group of three offshore
natural gas wells that were producing at uneconomic levels have proven
to be unsuccessful. As a result, the Company will incur a pretax write-
off to discontinued operations of approximately $7.5 million related to
these three wells in the third quarter.
TECO Energy is a diversified energy-related holding company
headquartered in Tampa. Its principal businesses include Tampa
Electric, TECO Coal, TECO Coalbed Methane, TECO Power Services, TECO
Transport, Peoples Gas System, Peoples Gas Company, Gator Gas Marketing,
TeCom and Bosek, Gibson and Associates.
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