EX-99.1
2
ex991.htm
EXHIBIT 99.1
Exhibit 99.1
Exhibit
99.1
Progress
Energy completes sale of natural gas assets
RALEIGH,
N.C. (October 2, 2006
)
-
Progress Energy [NYSE: PGN] today announced completion of the sale of Winchester
Energy and its associated natural gas businesses to a wholly owned subsidiary
of
Texas-based EXCO Resources Inc. for approximately $1.16 billion in cash (subject
to customary closing and post-closing adjustments).
As
announced in July, net proceeds from the sale will be used to reduce
debt.
"Completing
this transaction is a significant step toward accomplishing our goal of reducing
debt at the holding company level by $1.3 billion by the end of 2007", said Bob
McGehee, chairman and CEO of Progress Energy. "This was the right time for our
company to exit the gas exploration and production business. We were able to
capitalize on favorable market conditions while substantially increasing value
over the invested capital and lowering the company's risk profile".
The
sale
includes Progress Energy's holdings in Winchester Production Company,
Westchester Gas Company, Texas Gas Gathering and Talco Midstream Assets.
Specific assets include more than 325 Bcfe of proved natural gas reserves,
more
than 500 producing wells and more than 350 miles of pipelines and gathering
lines and other related assets, all located in east Texas and
Louisiana.
Progress
Energy, headquartered in Raleigh, N.C., is a Fortune 250 diversified energy
company with more than 23,000 megawatts of generation capacity and $10 billion
in annual revenues. The company's holdings include two electric utilities
serving approximately 3 million customers in North Carolina, South Carolina
and
Florida. Progress Energy's nonregulated operations include energy marketing.
Progress Energy is the 2006 recipient of the Edison Electric Institute's Edison
Award, the industry's highest honor, in recognition of its operational
excellence. In 2005, the company also received the prestigious J.D. Power and
Associates Founder's Award for dedication, commitment and sustained improvement
in customer service. For more information about Progress Energy, visit the
company's Web site at progress-energy.com.
*
* *
This
document contains forward-looking statements within the meaning of the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
The
forward-looking statements involve estimates, projections, goals, forecasts,
assumptions, risk and/or uncertainties that could cause actual results or
outcomes to differ materially from those expressed in the forward-looking
statements.
These
and other risk factors are detailed from time to time in our SEC
reports.
###

EX - 99 . 1 2 ex991 . htm EXHIBIT 99 . 1 Exhibit 99 . 1 Exhibit 99 . 1 Progress Energy completes sale of natural gas assets RALEIGH , N . C . ( October 2 , 2006 ) - Progress Energy [ NYSE : PGN ] today announced completion of the sale of Winchester Energy and its associated natural gas businesses to a wholly owned subsidiary of Texas - based EXCO Resources Inc . for approximately $ 1.16 billion in cash ( subject to customary closing and post - closing adjustments ) . As announced in July , net proceeds from the sale will be used to reduce debt . " Completing this transaction is a significant step toward accomplishing our goal of reducing debt at the holding company level by $ 1.3 billion by the end of 2007 " , said Bob McGehee , chairman and CEO of Progress Energy . " This was the right time for our company to exit the gas exploration and production business . We were able to capitalize on favorable market conditions while substantially increasing value over the invested capital and lowering the company 's risk profile " . The sale includes Progress Energy 's holdings in Winchester Production Company , Westchester Gas Company , Texas Gas Gathering and Talco Midstream Assets . Specific assets include more than 325 Bcfe of proved natural gas reserves , more than 500 producing wells and more than 350 miles of pipelines and gathering lines and other related assets , all located in east Texas and Louisiana . Progress Energy , headquartered in Raleigh , N . C . , is a Fortune 250 diversified energy company with more than 23,000 megawatts of generation capacity and $ 10 billion in annual revenues . The company 's holdings include two electric utilities serving approximately 3 million customers in North Carolina , South Carolina and Florida . Progress Energy 's non regulated operations include energy marketing . Progress Energy is the 2006 recipient of the Edison Electric Institute 's Edison Award , the industry 's highest honor , in recognition of its operational excellence . In 2005 , the company also received the prestigious J . D . Power and Associates Founder 's Award for dedication , commitment and sustained improvement in customer service . For more information about Progress Energy , visit the company 's Web site at progress-energy.com . * * * This document contains forward - looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 . The forward - looking statements involve estimates , projections , goals , forecasts , assumptions , risk and / or uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward - looking statements . These and other risk factors are detailed from time to time in our SEC reports . # # #
O O O O O O O O O O O O O O O O O O O O O B-Parties.SELLING_COMPANY I-Parties.SELLING_COMPANY O O O O O O O O O O O O O O O O O O O B-Parties.SELLING_COMPANY I-Parties.SELLING_COMPANY O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B-Generic_Info.ANNUAL_REVENUES I-Generic_Info.ANNUAL_REVENUES O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O