Proceeds of $48 Million Subject to Final Working Capital Adjustments
Closing of Transaction Expected in Early August, Following Regulatory Approval
CNG's Previously Announced Exit From Wholesale Gas Business
Is Ahead of Schedule
PITTSBURGH, July 21 /PRNewswire/ -- Consolidated Natural Gas Company
(NYSE: CNG) has a definitive agreement to sell the capital stock of its CNG
Energy Services Corporation wholesale energy marketing subsidiary to Sempra
Energy Trading (NYSE: SRE), a subsidiary of San Diego-based Sempra Energy.
The sale is expected to close in early August, following regulatory approval.
Consolidated recorded disposal costs in the first quarter related to
shutting down CNG Energy Services. Proceeds from the sale of $48 million are
subject to final working capital adjustments.
CNG announced in April that it is exiting the wholesale energy marketing
business. The wind down of the wholesale gas business is now expected to be
completed during the third quarter of 1998, ahead of the original year-end
schedule.
The business being sold consists primarily of contracts for the purchase
and sale of natural gas as well as rights to pipeline and storage capacity.
The business is located primarily in the Northeast and Mid-Atlantic states.
The sale is dependent upon approval of the Securities and Exchange
Commission and Federal Energy Regulatory Commission. The Federal Trade
Commission has already approved the transaction.
Consolidated Natural Gas Company (NYSE: CNG) is one of the nation's
largest producers, transporters, distributors and retail marketers of natural
gas. The company's natural gas transmission and distribution operations serve
customers in Pennsylvania, Ohio, Virginia, West Virginia, New York and other
states in the Northeast and Mid-Atlantic regions. CNG explores for and
produces oil and natural gas in the United States and Canada. The company also
selectively participates in energy businesses abroad.
CNG's recent news releases are available 24 hours a day on the Internet,
by fax machine, or by voice recording. On the Internet, use CNG's web site:
http://www.cng.com For faxing, call 1-800-758-5804 on a touch-tone phone and enter
CNG's company extension, which is 203456. From a menu, you will then be able
to select releases that will be faxed to you immediately without charge. For
voice recordings, call 1-888-CNG-NEWS. This line is toll-free.
SOURCE Consolidated Natural Gas Company
 back to top
Related links:
http://www.cng.com
CONTACT:
Chet Wade of Consolidated Natural Gas,
412-690-1361
|
