OGE Energy Corp. Subsidiary to Sell Gas Gathering Assets
Posted on: Thursday, 30 March 2006, 18:00 CST
OKLAHOMA CITY, March 30 /PRNewswire-FirstCall/ -- OGE Energy Corp. announced today a subsidiary of its natural gas pipeline company, Enogex Inc., has agreed to sell gas gathering assets in the Kinta, Okla., area to a subsidiary of Hiland Partners, L.P.
"The sale of these assets comes after careful analysis and is part of our repositioning and growth strategy," said Danny Harris, president and chief operating officer of Enogex. "We expect this action to help us improve our long-term financial performance and position us to expand into other geographic areas of operation."
The Enogex Gas Gathering LLC assets included in the transaction are approximately 568 miles of gas gathering pipeline and 23 compressor units with current volumes of approximately 145 million cubic feet per day, all in eastern Oklahoma.
The sale price will be approximately $93 million. The transaction is expected to provide an after-tax book gain of approximately $34 million and is currently scheduled to close by the end of April. The transaction is subject to customary closing conditions and regulatory review under the Hart-Scott- Rodino Antitrust Improvements Act of 1976.
The Enogex companies are engaged in natural gas gathering, processing, transportation, storage and marketing. OGE Energy is the parent of Enogex Inc. and also the parent of Oklahoma Gas and Electric Company, a regulated electric utility with approximately 750,000 customers in a service area spanning 30,000 square miles in Oklahoma and western Arkansas.
OGE Energy Corp.
CONTACT: Brian Alford, +1-405-553-3187, or financial, Todd Tidwell,+1-405-553-3966, both of OGE Energy Corp.
Web site: http://www.oge.com/
Source: PRNewswire-FirstCall
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