Vectren Corporation Announces Disposition by ProLiance Holdings, LLC of
Wholesale Gas Marketing Assets
EVANSVILLE, IN -- (Marketwired) -- 06/18/13 -- Vectren Corporation
(NYSE: VVC) announced effective June 18, 2013, ProLiance Holdings,
LLC (ProLiance) has disposed of certain of the net assets, along with
the long term pipeline and storage commitments, of its wholesale
natural gas marketing subsidiary, ProLiance Energy, LLC, to a
subsidiary of Energy Transfer Partners (NYSE: ETP). In addition to
meeting the gas supply needs of its 2,000 commercial and industrial
customers, since 1996 ProLiance Energy has provided the gas supply
portfolio administration services for Vectren's and Citizens Energy
Group's Indiana gas utilities. ProLiance is jointly owned by
affiliates of Vectren (61% ownership) and Citizens Energy Group (39%
"We are very pleased ProLiance found a logical buyer for the net
assets of ProLiance Energy in Energy Transfer Partners, which is well
positioned to continue to serve ProLiance Energy's customers," said
Carl Chapman, Vectren's chairman, president and CEO. "We're confident
the transition will go smoothly for ProLiance's customers."
ProLiance's decision to sell these assets is consistent with
Vectren's previously stated strategy, including in its most recent
filing on Form 10-Q. Vectren disclosed that it continues its emphasis
on growing its infrastructure and energy services businesses, and
that the analysis and evaluation of strategic alternatives related to
the investment in its energy marketing affiliate was ongoing.
Under the new ownership by Energy Transfer Partners, continued net
benefits to Vectren's and Citizens' gas utility customers are
expected. Indiana gas customers of Vectren and Citizens have realized
aggregate gas cost savings well in excess of $200 million as a result
of the portfolio administration service provided by ProLiance Energy
since its inception in 1996.
Upon final adjustments for working capital, costs and fees associated
with the disposition of these net assets, ProLiance expects to record
a loss of between ($62) million and ($67) million. Vectren's
after-tax share of the net loss to be recorded in its second quarter
of 2013 is expected to be between ($26) million and ($28) million, or
($0.32) to ($0.34) per share. The loss associated with the
disposition by Vectren's unconsolidated subsidiary, ProLiance, has no
material cash flow impact to Vectren. Through the date of the
disposition, Vectren's share of the 2013 expected operating losses
are estimated to be ($0.10) to ($0.12) per share.
Following the disposition of these net assets, ProLiance's remaining
investment of $15 million relates to three physical storage and
pipeline assets, of which two have now been sold, and $35 million in
a minority joint venture with Sempra Energy in a development project
in Louisiana for a salt-cavern natural gas storage facility near the
Cameron LNG facility that has been referred to previously as Liberty
Gas Storage (Liberty). ProLiance continues to monitor its investment
Lazard served as financial advisor to ProLiance in connection with
Live Webcast on June 19, 2013
Vectren will host a teleconference on
June 19, 2013, at 11:00 a.m. (EDT) at which time management will
discuss the above information. To participate in the call, analysts
are asked to dial 1-866-821-5457 10 minutes prior to the start time
and refer to the "Vectren Corporation Discussion of ProLiance
Investment Call." All interested investors may listen to a live
audio-only webcast accompanied by a slide presentation, which will be
available on Vectren's website, www.vectren.com, by clicking on the
"Investors" link at the top of the page, then by choosing the webcast
link located on the right-hand side under Current Events. A replay of
the webcast will be made available at the same location approximately
two hours following the conclusion of the call.
ProLiance Holdings, LLC owns ProLiance Energy, LLC,
which is a full-service natural gas marketing company that serves
Indiana, Michigan, Ohio, Illinois, Missouri, Kentucky, Tennessee and
Mississippi. ProLiance Energy purchases natural gas from a variety of
supply basins and transports the gas through many different pipelines
to provide competitively-priced natural gas to its customers.
ProLiance Holdings also owns ProLiance Transportation and Storage
that owns transportation and storage assets and provides service to
the member utility companies and other entities.
About Energy Transfer Partners, L.P.
Energy Transfer Partners, L.P.
(NYSE: ETP) is a master limited partnership owning and operating one
of the largest and most diversified portfolios of energy assets in
the United States. ETP currently has natural gas operations that
include approximately 47,000 miles of gathering and transportation
pipelines, treating and processing assets, and storage facilities.
ETP owns 100% of ETP Holdco Corporation, which owns Southern Union
Company and Sunoco, Inc., and a 70% interest in Lone Star NGL LLC, a
joint venture that owns and operates natural gas liquids storage,
fractionation and transportation assets. ETP also owns the general
partner, 100% of the incentive distribution rights, and approximately
33.5 million common units in Sunoco Logistics Partners L.P. (NYSE:
SXL), which operates a geographically diverse portfolio of crude oil
and refined products pipelines, terminalling and crude oil
acquisition and marketing assets. ETP's general partner is owned by
Energy Transfer Equity, L.P. (NYSE: ETE).
Vectren Corporation (NYSE: VVC) is an energy holding
company headquartered in Evansville, Ind. Vectren's energy delivery
subsidiaries provide gas and/or electricity to more than 1 million
customers in adjoining service territories that cover nearly
two-thirds of Indiana and west central Ohio. Vectren's nonutility
subsidiaries and affiliates currently offer energy-related products
and services to customers throughout the U.S. These include
infrastructure services, energy services, and coal mining. To learn
more about Vectren, visit www.vectren.com.
About Citizens Energy Group
Citizens Energy Group is a Public
Charitable Trust providing safe and reliable utility services to more
than 400,000 residential, commercial and industrial customers in the
Indianapolis area. The Public Charitable Trust means its utilities
are managed only for the benefit of customers and the community.
Additional information is available online at
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