-- More Than 60 Percent of $524.5 Million Total Allocated to E&P
-- Expanded Exploration Program Planned
-- Overall Budget Down Due to Lower International, Information Systems Needs
PITTSBURGH, Nov. 10 /PRNewswire/ -- Directors of Consolidated Natural Gas
Company (NYSE: CNG) today approved a $524.5 million capital budget for 1999
that continues the company's focus on expanding its successful exploration and
production business. More than 60 percent of the 1999 budget is allocated to
CNG's E&P subsidiary, CNG Producing Company.
"We intend to use CNG's financial strength to press our advantage in E&P,"
said George A. Davidson, Jr., CNG chairman and chief executive officer.
"While many other companies are forced to curtail their drilling programs, the
portion of our E&P budget dedicated to exploration -- the key to future growth
-- is targeted to go up 25 percent next year."
CNG's overall 1999 capital budget is down from this year's anticipated
spending of $792 million. This is primarily because of $191 million that was
invested in projects in 1998 in Australia and Argentina. International
investments are made on a case-by-case basis as projects are identified.
Spending for information systems throughout CNG is also expected to fall by
about $30 million as those projects have been finished or are nearing
completion.
Spending at CNG Producing is budgeted at $326 million in 1999 compared
with an initial 1998 budget of $307 million and expected spending of
$354 million. The added E&P spending in 1998 was due primarily to increased
exploration and developing exploratory successes.
"While we will work with our partners -- Shell and Murphy -- to develop
the recently announced North Marlin deepwater discovery in the Gulf of Mexico,
total E&P development spending is expected to be down in 1999 because most of
the work has been completed on CNG's Nautilus and Nemo discoveries on the
continental shelf," Mr. Davidson said. "However, as has been the case in
recent years, we are prepared to fund additional development work if
exploratory success demands it."
In other business segments, the 1999 capital budget compared with 1998
anticipated spending is: natural gas distribution, $128 million vs.
$147 million; natural gas transmission, $55 million vs. $58 million; and
corporate and other, $16 million vs. $42 million. These segment reductions
are generally due to the previously mentioned lower requirements for
information systems.
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.
This press release contains forward-looking statements. The company
wishes to caution readers that the assumptions which form the basis for
forward-looking statements with respect to or that may impact earnings for
fiscal 1998, and thereafter, include many factors that are beyond the
company's ability to control or estimate precisely, such as estimates of
future market conditions and the behavior of other market participants. Other
factors include, but are not limited to, weather conditions, economic
conditions in the company's service territory, fluctuations in energy-related
commodity prices, conversion activity, other marketing efforts and other
uncertainties.
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
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Related links:
http://www.cng.com
Company News On-Call:
http://www.prnewswire.com/comp/203456.html or fax,
800-758-5804, ext. 203456
CONTACT:
Chet Wade of Consolidated Natural Gas,
412-690-1361
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