Nucor Enters Long-Term Natural Gas Agreement

                 Nucor Enters Long-Term Natural Gas Agreement

PR Newswire

CHARLOTTE, N.C., Nov. 6, 2012

CHARLOTTE, N.C., Nov.6, 2012 /PRNewswire/ --Nucor Corporation (NYSE: NUE)
announced today that we have entered into a long-term agreement with Encana
Oil & Gas (USA) Inc. for an onshore natural gas drilling program in the
continental United States that we believe will ensure a reliable, low cost
supply of natural gas for our existing and expected future needs for more than
20 years.

Under the terms of the agreement, Nucor will pay its share of costs plus an
additional amount of carried interest as each well is drilled, subject to a
cap on carry paid for each well and a cap on total carried interest. Either
party may suspend drilling if natural gas prices fall below a predetermined
threshold. Encana, a proven leader in drilling technology and environmental
stewardship, will be the operator and will provide expertise to drill,
complete and operate the wells. This new agreement is in addition to an
earlier and smaller onshore natural gas drilling agreement with Encana that
was established in 2010.

By entering into this new agreement, Nucor will be better able to manage its
exposure to natural gas volatility and overall energy demand for its
manufacturing operations. The agreement will ensure a sustainable competitive
advantage in natural gas costs for Nucor's direct reduced iron facility
currently under construction in Convent, Louisiana, which is on track for
startup in mid-2013 and will significantly increase Nucor's usage of natural
gas. This new facility, together with our ability to ensure a long-term low
cost of natural gas, is an important phase in the execution of Nucor's raw
material strategy of providing 6-7 million tons per year of low cost, high
quality iron units to our steel mills. Nucor may build additional DRI capacity
at the site in Louisiana, further boosting natural gas usage. Additionally,
Nucor currently is a substantial consumer of natural gas at its steel
manufacturing operations located throughout the United States. The drilling
of natural gas wells resulting from the two agreements is expected to provide
enough natural gas to equal Nucor's usage at all of our steel mills in the
U.S. plus the usage of two DRI facilities, or alternatively three DRI plants.
Although it is not possible to guarantee the production volumes, the
agreements are for drilling in areas with proven reserves. In addition, the
production of the wells that have thus far been drilled and are producing
under the 2010 agreement is exceeding the expectations that Nucor modeled for
that investment by more than 60%.

Commenting on the transaction, Nucor's Chairman and CEO, Dan DiMicco noted,
"We are always searching for ways to improve our competitive position and
drive sustained value creation over cycles. The increased exposure to natural
gas prices that will accompany our current and potential DRI production,
combined with the tremendous advances that have been made in the natural gas
industry, have created a unique opportunity to leverage our strong balance
sheet to create what we believe will be a lasting competitive advantage for
Nucor. This is a win-win proposition for both Nucor and Encana, and we look
forward to a long and productive relationship."

Nucor and affiliates are manufacturers of steel products, with operating
facilities primarily in the U.S. and Canada. Products produced include: carbon
and alloy steel - in bars, beams, sheet and plate; steel piling; steel joists
and joist girders; steel deck; fabricated concrete reinforcing steel; cold
finished steel; steel fasteners; metal building systems; steel grating and
expanded metal; and wire and wire mesh. Nucor, through the David J. Joseph
Company, also brokers ferrous and nonferrous scrap. Nucor is North America's
largest recycler.

Certain statements contained in this news release are "forward-looking
statements" that involve risks and uncertainties. The words "believe,"
"expect," "project," "will," "should," "could" and similar expressions are
intended to identify those forward-looking statements. Factors that might
cause Nucor's actual results to differ materially from those anticipated in
forward-looking statements include, but are not limited to: (1) the
sensitivity of the results of our operations to prevailing steel prices and
the changes in the supply and cost of raw materials, including scrap steel;
(2) market demand for steel products; (3) energy costs and availability; and
(4) competitive pressure on sales and pricing, including competition from
imports and substitute materials. These and other factors are outlined in
Nucor's regulatory filings with the Securities and Exchange Commission,
including those in Nucor's December 31, 2011 Annual Report on Form 10-K. The
forward-looking statements contained in this news release speak only as of
this date, and Nucor does not assume any obligation to update them.



SOURCE Nucor Corporation

Website: http://www.nucor.com
Contact: Nucor Executive Offices, +1-704-366-7000, Fax: +1-704-362-4208
 
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