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Enogex Releases UT, OK Assets
OGE Energy's subsidiary Enogex, has completed the sale of several non-core assets in Utah and in Oklahoma. The assets were considered non-core by the company after it completed its acquisition of Transok LLC for $701 million in July 1999 (see NGI, May 24, 1999).
The assets that were sold include interests in natural gas and oil properties in Utah and three natural gas-gathering pipeline systems in Oklahoma. Enogex sold all of its interests in oil and gas properties in Utah, including rights, equipment, real property and leases. The company sold the three Oklahoma pipeline systems to Seminole Gas of Tulsa, OK. Included in the sale was its Piedmont and El Reno systems in Canadian County, and the Fidelity gathering system in Oklahoma County. All gathering lines, compressors, and related equipment along with contracts and rights of way were included in the Oklahoma sale. The total value of the combined sales comes to about $14 million.
"We said when we financed the Transok acquisition that we would pursue opportunities to sell non-core assets to generate cash for debt service," said James R. Hatfield, senior vice president, OGE Energy. "With these sales, we're following through on that commitment."
Enogex's acquisition of the Transok pipeline system last year formed one of the 10 largest natural gas pipelines in the United States.
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