Southern Union Co. announces close of Texas assets sale to ONEOK Inc.


WILKES-BARRE, Pa., Jan. 3, 2003 — Southern Union Co. announced Friday the close of the sale of Southern Union Gas Co., its Austin-based natural gas operating division, and other related assets to ONEOK Inc. for approximately $420 million in cash.

Southern Union plans to re-deploy substantially all the sale proceeds in interstate pipeline and other energy-related investments – such as the Company’s pending acquisition of the CMS Panhandle Companies.

As announced on December 22, 2002, Southern Union and AIG Highstar Capital, L.P. reached a definitive agreement with CMS Energy Corporation to acquire CMS Panhandle, headquartered in Houston, Texas, for approximately $1.8 billion.

Founded in 1929, Southern Union Gas Company was Southern Union’s pioneer natural gas operating division. It serves approximately 535,000 customers, including the cities of Austin, El Paso, Brownsville, Galveston and Port Arthur.

Related assets also sold to ONEOK through this transaction include SUPro Energy Company, Southern Transmission Company, Mercado Gas Services, Inc., Norteno Pipeline, and the Company’s investments in natural gas distribution in Piedras Negras, Mexico.

Southern Union Company remains an active energy distribution company serving approximately 1 million natural gas customers through its operating divisions in Missouri, Pennsylvania, Rhode Island and Massachusetts. Southern Union also owns and operates electric generating facilities in Pennsylvania. For further information, visit www.southernunionco.com.

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  • The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

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The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

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