TXU of Dallas sold substantially all of the assets of its gasprocessing subsidiary in Texas, TXU Processing Co. (TXUP), toCantera Resources Inc. for $105 million. TXUP (previously known asEnserch Processing Inc.) has 162 full-time employees, now bound forCantera, and owns and operates nine gas processing plants suppliedby more than 1,800 miles of company-controlled gathering lines withinstalled gathering compression of more than 34,500 horsepower.

TXU said TXUP does not align with its core businesses. The gasprocessing business was part of Enserch, which was merged with TXU,called Texas Utilities at the time. Spokesperson Sandy Smith saidit was decided last summer that TXUP would be sold. “We areconfident that this sale represents the best prospects for TXUP andits staff, and that TXUP will be a valued addition for CanteraResources,” said TXU President David Biegler. The deal is expectedto close in the second quarter.

No one could be reached at Cantera, which Smith said is a newcompany formed with the backing of Morgan Stanley.

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