NORTHERN BORDER PARTNERS, L.P. ANNOUNCES INTENT
TO PURCHASE ENRON NORTH AMERICA ASSETS IN POWDER RIVER
AND WIND RIVER BASINS
FOR IMMEDIATE RELEASE: Wednesday, August 23, 2000
OMAHA, Neb. -- Northern Border Partners, L.P. (NYSE: NBP) announced today that it has signed a Letter of Understanding to purchase gas gathering facilities in the Powder River and Wind River Basins in Wyoming for approximately $200 million from Enron North America Corp. (ENA), a wholly-owned subsidiary of Enron Corp. (NYSE: ENE). The transaction includes the purchase of Enron Midstream Services, L.L.C., which holds, among other assets, an ownership interest in Bighorn Gas Gathering, L.L.C., and the ENA subsidiaries that hold ownership interests in Fort Union Gas Gathering, L.L.C. and Lost Creek Gathering, L.L.C.
Upon completion of this transaction, NBP and ENA will provide complementary services in the Powder River and Wind River Basins. NBP will own and operate physical assets and will provide gathering and transportation services. ENA will continue to provide gas purchase and sales, finance, risk management and producer outsourcing services.
“The transaction is further evidence of our commitment to grow and diversify our asset mix,” said Larry DeRoin, chairman and chief executive officer of Northern Border Partners, L.P. “The Powder River and Wind River Basins offer us both growth opportunities and strong economics.”
The interest in Bighorn adds to NBP’s current ownership position. CMS Field Services, Inc. holds the remaining ownership interest in Bighorn. The remaining ownership interest in Fort Union is held in varying percentages by subsidiaries of CMS Energy Services, Western Gas Resources, Inc., Colorado Interstate Gas Company, and Barrett Resources. A subsidiary of Burlington Resources, Inc. holds the remaining ownership interest in Lost Creek.
Fort Union owns an existing 106-mile gas gathering system in the Powder River Basin. Lost Creek owns a 123-mile gas gathering system in the Wind River Basin that is expected to be in service later this month. Bighorn owns an existing 92-mile gas gathering system in the Powder River Basin with an additional 56 miles under construction.
Completion of this transaction is subject to the negotiation and execution of definitive agreements and receipt of all necessary approvals.
Northern Border Partners, L.P. owns a 70 percent general partner interest in Northern Border Pipeline Company, which owns a 1,214-mile interstate pipeline system which transports approximately 23 percent of all Canadian natural gas imports into the United States. It also owns the Black Mesa Pipeline, a 273-mile, coal-water slurry pipeline from Kayenta, Ariz. to the Mohave Power Station in Laughlin, Nev. and an equity investment in Bighorn Gas Gathering, L.L.C., a gathering system located in the Powder River Basin in Wyoming. Northern Border Partners, L.P. information may be found at www.northernborderpartners.com.
Northern Border Partners, L.P. will be hosting an investment community conference call on Thursday, Aug. 24, 2000 at 9:30 a.m. CDT. Interested parties may listen via the Internet, on either a live or replay basis, at www.northernborderpartners.com.
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934. Although Northern Border Partners, L.P. believes that its expectations are based on reasonable assumptions, it can give no assurance that such expectations will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements include competitive conditions in the gathering and transportation of natural gas, due diligence of the transaction and timely approval of the Hart-Scott-Rodino Act filing by the Federal Trade Commission or expiration or early termination of the waiting period prescribed under the Hart-Scott-Rodino Act.
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For additional information please contact:
Public Relations Contact:
Beth Jensen
(402) 398-7806
Investor Relations Contact:
Ellen Konsdorf
(402) 398-7840
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