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COLUMBIA ENERGY SERVICES TO SELL WHOLESALE ENERGY MARKETING OPERATIONS TO ENRON
FOR IMMEDIATE RELEASE: Tuesday, November 23, 1999
HOUSTON - Columbia Energy Services (CES), a wholly owned subsidiary of Columbia Energy Group, and Enron North America Corp., a wholly owned subsidiary of Enron Corp., announced today that they have executed a definitive agreement under which Enron will buy CES’s wholesale energy marketing operations. The transaction, which includes gas storage inventory and most contracts for gas, power, storage, transportation, and asset management, is expected to be completed by year-end.
In addition, Enron will become the primary wholesale provider to CES’s retail operations and the primary buyer of Columbia Natural Resources’ Appalachian production, into early 2001.
“The decision to sell the CES wholesale and trading operations was announced in August 1999 as part of a move to focus its strategy upon retail energy marketing operations in areas where Columbia's existing geographic footprint provides a competitive advantage,” said Brian Watt, president and CEO of Columbia Energy Services.
Columbia's principal operations are in the East, amidst key states expected to provide the best development opportunities as deregulation of gas and electrical power markets proceeds.
“This transaction fits perfectly with our core business of providing energy and risk management solutions to wholesale customers and expands the scale and scope of our operations,” said Cliff Baxter, chairman and CEO of Enron North America. “In addition to the existing business, we are excited about the opportunity to expand our relationship with the Columbia Energy Group companies through our supply agreement with CES.”
Enron is one of the world's leading electricity, natural gas and communications companies. The company, which owns approximately $34 billion in energy and communications assets, produces electricity and natural gas, develops, constructs and operates energy facilities worldwide, delivers physical commodities and financial and risk management services to customers around the world, and is developing an intelligent network platform to facilitate online business. Enron's Internet address is www.enron.com, and the stock is traded under the ticker symbol, "ENE."
Columbia Energy Group, based in Herndon, Va., is one of the nation's leading energy services companies, with assets of approximately $7 billion. Its operating companies engage in all phases of the natural gas business, including exploration and production, transmission, storage and distribution, as well as retail energy marketing, propane and petroleum product sales, and electric power generation. Information about Columbia Energy Group (NYSE:CG) is available on the Internet at www.columbiaenergygroup.com.
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This press release contains "forward looking statements" within the meaning of the Federal securities laws, including statements concerning, on a consolidated, segment or subsidiary basis, Columbia's and Enron’s plans, objectives and expected performance. There can be no assurance that actual results will not differ materially due to various factors, many of which are beyond the control of Columbia and Enron, including, but not limited to, competition, the regulatory approval process, weather, supply and demand for natural gas, electricity and propane, changes in general economic conditions, and timely consummation of proposed dispositions.
Click here to download this press release in Microsoft Word format.
For additional information please contact:
Mike McGarry
Columbia Energy Services
(703) 561-6063
Tom Hughes
Investor Relations
(703) 561-6001
Elisabeth McCabe
Enron North America
(713) 853-9964
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