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): October 17, 1996
MidAmerican Energy Company
(Exact name of registrant as specified in its charter)
Iowa 1-11505 42-1425214
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
666 Grand Avenue, P. O. Box 657, Des Moines, Iowa 50303
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 515/242-4300
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Item 5 Other Events.
On October 17, 1996, MidAmerican Energy Company
("MidAmerican") announced that it has entered into a letter of intent to sell
certain of its nonregulated oil and gas subsidiaries to KCS Energy Inc. of
Edison, New Jersey for $217 million. MidAmerican and KCS Energy expect to
complete the transaction by the end of the calendar year. The sale has been
undertaken as a component of MidAmerican's evaluation of strategic alternatives
for its nonregulated subsidiaries.
A copy of MidAmerican's press release regarding this
transaction is attached as an exhibit to this report.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
1. Press Release of MidAmerican Energy Company dated October 17,
1996.
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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 thereunto duly authorized.
MIDAMERICAN ENERGY COMPANY
/s/ Paul J. Leighton
Paul J. Leighton
Vice President and Corporate Secretary
October 17, 1996
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October 17, 1996
John McCarroll (515) 281-2785
MidAmerican Energy Company today announced that it has entered into a letter of
intent with KCS Energy Inc. of Edison, N.J. to sell its subsidiaries, InterCoast
Oil and Gas Company, GED Energy Services Inc. and InterCoast Gas Services
Company, for a price of $217 million.
InterCoast Oil and Gas, formerly Medallion Production Company, is involved in
natural gas and oil exploration and production and marketing of oil and natural
gas reserves. GED Energy Services and InterCoast Gas Services are natural gas
marketing firms. KCS Energy is involved in oil and gas exploration, production
and marketing.
The transaction is a part of MidAmerican's plan to redeploy certain of its
non-regulated investments in order to support its strategy to be a leading
regional electricity, natural gas and communications provider. The sale will
generate cash of $140 million after taxes initially, and an additional $40
million when a short-term note is paid. It will result in an after-tax loss of
$6.6 million, or 7 cents per common share. MidAmerican and KCS Energy expect to
complete the transaction by the end of the year.
Dillon, Read & Co. Inc. served as financial advisors to MidAmerican in
connection with this transaction.
MidAmerican Energy Company, Iowa's largest utility, serves 635,000 electric
customers and 600,000 natural gas customers in Iowa, Illinois, South Dakota and
Nebraska. Company headquarters are in Des Moines, Iowa. Information on
MidAmerican is available on the Internet at http://www.midamerican.com.
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