Northern Border Partners, L.P. Completes Purchase of Interests in Guardian Pipeline, L.L.C.
02 May 2006 - 4:00AM
Business Wire
Northern Border Partners, L.P. (NYSE:NBP) announced today that it
completed its previously announced purchase of the additional 66
2/3 percent interests in Guardian Pipeline, L.L.C. (Guardian) for
approximately $77 million. Wisconsin Energy Corporation (NYSE:WEC)
and a subsidiary of WPS Resources Corporation (NYSE:WPS) each held
33 1/3 percent interest in the pipeline. Northern Border Partners,
through its subsidiaries, now owns 100 percent of Guardian.
Guardian Pipeline is a 143-mile interstate natural gas pipeline
system that began service in December 2002. It has the capacity to
transport 750,000 dekatherms per day (Dth/d) of natural gas from
Joliet, Ill., to Ixonia, Wisc. "Completion of this acquisition adds
a number of strategic benefits to the partnership, including
additional fee-based revenue under long-term contracts," said David
Kyle, chairman and chief executive officer of Northern Border
Partners. As a result of the acquisition, Guardian's financial
results now will be consolidated and reported in the Partnership's
interstate pipeline segment instead of reflected as an equity
investment in an unconsolidated affiliate. 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,
bringing much-needed new pipeline infrastructure to eastern
Wisconsin. The expansion and extension project, referred to as
Guardian II, would bring an additional 537,200 Dth/d of capacity to
eastern Wisconsin. Capital costs are estimated to range between
$220 million and $240 million, and construction would begin after
approval by the Federal Energy Regulatory Commission, which is
expected in late 2007. The project is targeted for completion in
November 2008. The partnership is currently engaged in the FERC's
pre-filing process for the project and anticipates filing an
application with the FERC this fall. Northern Border Partners, L.P.
is a publicly traded partnership that owns and operates: natural
gas gathering and processing facilities; natural gas liquids
gathering, fractionation, transportation, and storage; and inter-
and intra-state natural gas pipelines. Its general partner is
ONEOK, Inc., a diversified energy company, which owns 45.7 percent
of the partnership. ONEOK is one of the largest natural gas
distributors in the United States, and its energy services
operation focuses primarily on marketing natural gas and related
services throughout the U.S. More information may be found at
http://www.northernborderpartners.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: 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; performance of contractual obligations by the shippers; and
our ability to control operating costs.
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