Northern Border Partners, L.P. To Purchase Remaining Interests in Guardian Pipeline, L.L.C.
30 Marzo 2006 - 2:20PM
Business Wire
Northern Border Partners, L.P. (NYSE:NBP) announced today that it
will purchase additional 66 2/3 percent interests in Guardian
Pipeline, L.L.C. for approximately $77 million. The interests are
currently held by Wisconsin Energy Corporation (NYSE:WEC) (33 1/3
percent) and a subsidiary of WPS Resources Corporation (NYSE:WPS)
(33 1/3 percent). The purchase is expected to close by the end of
April 2006, subject to receipt of all necessary approvals.
Following completion of the transaction, Northern Border Partners,
through its subsidiaries, will own 100 percent of Guardian
Pipeline, L.L.C. Guardian Pipeline is a 143-mile interstate natural
gas pipeline system that commenced service in December 2002. It is
currently capable of transporting 750,000 dekatherms per day
(Dth/d) of natural gas from Joliet, Illinois to Ixonia, Wisconsin.
On February 7, 2006, Guardian announced that it will expand and
extend the existing pipeline approximately 106 miles from Ixonia to
the Green Bay area. The expansion would bring an additional 537,200
Dth/d of capacity to eastern Wisconsin. Two major Wisconsin utility
companies have entered into natural gas transportation agreements
to support the project. Capital costs are estimated to range
between $200 million and $250 million and construction could begin
after approval by the Federal Energy Regulatory Commission, which
is expected in late 2007. The project is targeted for completion in
November 2008. "We are excited about the opportunity to own 100
percent of the existing Guardian pipeline as well as the
opportunity to build, own and operate Guardian's expansion and
extension to Green Bay. Consolidating Guardian's ownership adds
strategic benefits to the Partnership as well as significant
fee-based revenue under long-term contracts," said Bill Cordes,
chief executive officer of Northern Border Partners. "As we move
forward with this project, we are pleased to be a part of new
pipeline infrastructure that will provide natural gas customers in
Wisconsin with the necessary choices to support growth and
competition." Upon completion of the transaction, Guardian's
financial results will be consolidated and reported in the
Partnership's interstate pipeline segment instead of reflected as
equity earnings of unconsolidated affiliates on the income
statement. Operating income and depreciation expense for Guardian
for the full year 2006 are expected to be $20 million to $23
million, and $6 million to $7 million, respectively. Northern
Border Partners, L.P. is a publicly traded partnership whose
purpose is to own, operate and acquire a diversified portfolio of
energy assets. The Partnership owns and manages natural gas
pipelines and is engaged in the gathering and processing of natural
gas. More information may be found at
http://www.northernborderpartners.com. Wisconsin Energy
Corporation, based in Milwaukee, is a Fortune 500 energy company
serving more than 1.1 million electric customers in Wisconsin and
Michigan's Upper Peninsula, and more than one million natural gas
customers in Wisconsin. The company's principal utilities are We
Energies and Edison Sault Electric. The company's nonutility
businesses include energy development, recycling and renewable
energy, and real estate development. One of the Midwest's premier
energy companies, Wisconsin Energy Corporation
(www.wisconsinenergy.com) has more than 5,300 employees,
approximately 56,000 registered stockholders and more than $10
billion of assets. Wisconsin Public Service Corporation, a wholly
owned subsidiary of WPS Resources Corporation, is an investor-owned
electric and natural gas utility headquartered in Green Bay,
Wisconsin. It serves approximately 420,000 electric customers and
309,000 retail natural gas customers in residential, agricultural,
industrial, and commercial markets, as well as wholesale customers.
The company's service area includes northeastern and central
Wisconsin, as well as an adjacent portion of Upper Michigan.
Information is available online at www.wisconsinpublicservice.com
This press release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 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: approval of the
Hart-Scott-Rodino Act filing by the Federal Trade Commission of the
acquisition and satisfaction of other closing conditions; receipt
of certain approvals from the parties to the precedent agreements;
timely receipt of right-of-way, regulatory clearances and approval
for the expansion project; our ability to promptly obtain all
necessary materials and supplies required for construction; timely
completion of construction; competitive conditions in the overall
natural gas market; and performance of contractual obligations by
the shippers.
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