Phillips, Duke Postpone Field Services IPO
Duke Energy Field Services (DEFS), a wholly owned subsidiary of
Duke Energy Corp. and Phillips Petroleum Co., announced the
postponement of an initial public offering of common shares on
Friday because of volatile stock market conditions. The company
said shares will be offered to the public when market conditions
are more favorable. In the meantime, DEFS will continue to be owned
69.7% by Duke Energy and 30.3% by Phillips.
DEFS is one of the nation's largest natural gas gatherers, and
one of the largest producers and marketers of natural gas liquids.
Duke Energy and Phillips completed the combination of their
midstream assets into DEFS last month after complying with an order
by the Federal Trade Commission to sell off nearly 3,000 miles of
gas gathering lines in the Midcontinent region.
DEFS also recently acquire gathering and processing assets in Oklahoma jointly
owned by Conoco and Mitchell Energy (see NGI, Dec.
20, 1999; Jan. 10, April 10). Its recent purchases cover midstream assets
totaling $6 billion.
The FTC consent order, which is subject to final agency
approval, determined the transactions would create competitive
concerns in several counties in Kansas, Oklahoma and Texas. Duke is
now in the process of divesting a total of 2,787 miles of gathering
lines. The majority of the lines (2,250 miles) will be sold to
Duke's joint venture partners, with 800 miles in Oklahoma already
sold to Western Gas Resources Inc., co-owner of Westana Gathering
Co., and 1,450 miles of gathering in the Austin Chalk area of Texas
to be divested to Mitchell Energy, which co-owns the
Ferguson-Burleson County Gas Gathering System. The remaining 537
miles of gathering lines are to be sold to FTC-approved buyers
under the terms of the consent order.
DEFS, headquartered in Denver, operates in 11 states, including
Wyoming, Colorado, Kansas, Oklahoma, New Mexico, Texas, Louisiana,
Alabama and Mississippi, and along the Gulf Coast and in
northwestern Alberta, Canada. DEFS now owns and operates 70 plants
and 57,000 miles of pipeline.
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