HOUSTON, Texas, Oct. 22, 2002 — Dynegy Inc. announced that it has entered into a letter of intent to sell a significant portion of its Canadian natural gas business to The Seminole Group Inc.
Seminole will acquire Dynegy Canada Inc.’s physical natural gas marketing business, which serves approximately 600 commercial and industrial customers in Canada.
Dynegy has also agreed to sell to Seminole its 50 percent ownership stake in Tidal Energy Marketing Inc., a wholesale crude oil marketing company. The agreements, which are subject to the execution of definitive documentation, regulatory approval and other customary conditions, are expected to close in November 2002.
“The expected sale of Dynegy’s Canadian natural gas assets and the company’s interest in Tidal represent important steps in our company’s managed exit from the marketing and trading business,” said Dan Dienstbier, chairman and interim chief executive officer of Dynegy Inc. “Until these transactions are completed, the company will continue to serve its customers and honor our contractual obligations to them.”
Dienstbier added that Dynegy Generation and Dynegy Midstream Services, two of the company’s operating units, will continue marketing and trading activities around their physical energy assets.
Tom Kivisto, president and CEO of The Seminole Group, said, “From Seminole’s perspective, the acquisitions give the company an opportunity to capitalize on a strategic expansion in Canadian natural gas markets which furthers The Seminole Group’s Canadian presence in the crude oil marketing industry.”
Seminole intends to maintain approximately half of Dynegy Canada’s 70 employees.
Dynegy Inc. owns operating divisions engaged in power generation, natural gas liquids, regulated energy delivery and communications. Through these business units, the company serves customers by delivering value-added solutions to meet their energy and communications needs.
The Seminole Group provides diversified services for the North American crude oil, refined products and natural gas marketing and transportation industry.