HOUSTON, June 27, 2003 — Enron Corp. announced the organization of CrossCountry Energy Corp., a newly formed holding company that will hold Enron’s interests in Transwestern Pipeline Company, Citrus Corp., and Northern Plains Natural Gas Company.
In connection with the organization of CrossCountry Energy Corp., Enron has filed a motion with the Bankruptcy Court to approve the proposed transfer of Enron’s interest in the pipeline businesses to CrossCountry Energy Corp. The transactions contemplated by the Bankruptcy Court filing are expected to close shortly after Court approval.
Existing Enron board members Corbin A. McNeill, Jr. and Raymond S. Troubh have joined the CrossCountry Energy Corp. board of directors. A search is currently underway to identify three additional, outside board members.
“We appreciate Corbin McNeill and Ray Troubh’s willingness to join CrossCountry Energy’s board as a positive demonstration of our commitment to moving toward the independence of this business,” said Stephen F. Cooper, Enron interim CEO. “The underlying businesses have been well run and are expected to continue to provide solid returns for the estate and ultimately our creditors.”
It is anticipated that shares of CrossCountry Energy Corp. would be distributed to creditors in connection with implementation of Enron’s Chapter 11 plan. CrossCountry Energy Corp. is a Delaware corporation that was previously referred to informally as “PipeCo”, which should not be confused with the unaffiliated company doing business in Houston under the name Pipeco Services.
CrossCountry Energy Corp. will hold interests in three major North American natural gas pipeline businesses with approximately 8.5 Bcf/d of capacity and 9,900 miles of pipeline.
Transwestern Pipeline Company is a wholly owned 2,600-mile pipeline system extending from west Texas to the California border.
Citrus Corp., which is held 50 percent by Enron and 50 percent by Southern Natural, an El Paso affiliate, owns the 5,000-mile Florida Gas Transmission system that runs from south Texas to south Florida. The wholly owned Northern Plains Natural Gas Company is one of the general partners of Northern Border Partners, L.P. (NYSE:NBP – News), which holds ownership interests in Northern Border Pipeline Company, Midwestern Gas Transmission Company, Viking Gas Transmission Company and Guardian Pipeline, LLC. CrossCountry Energy Corp.’s Internet address is www.crosscountryenergy.com
Enron’s Internet address is www.enron.com.