Northern Border (NYSE:NBP)
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Northern Border Partners, L.P. (NYSE:NBP) announced
today that it completed its previously announced purchase of the
additional 66 2/3 percent interests in Guardian Pipeline, L.L.C.
(Guardian) for approximately $77 million. Wisconsin Energy Corporation
(NYSE:WEC) and a subsidiary of WPS Resources Corporation (NYSE:WPS)
each held 33 1/3 percent interest in the pipeline. Northern Border
Partners, through its subsidiaries, now owns 100 percent of Guardian.
Guardian Pipeline is a 143-mile interstate natural gas pipeline
system that began service in December 2002. It has the capacity to
transport 750,000 dekatherms per day (Dth/d) of natural gas from
Joliet, Ill., to Ixonia, Wisc.
"Completion of this acquisition adds a number of strategic
benefits to the partnership, including additional fee-based revenue
under long-term contracts," said David Kyle, chairman and chief
executive officer of Northern Border Partners.
As a result of the acquisition, Guardian's financial results now
will be consolidated and reported in the Partnership's interstate
pipeline segment instead of reflected as an equity investment in an
unconsolidated affiliate.
On February 7, 2006, Guardian announced that it will expand and
extend the existing pipeline approximately 106 miles from Ixonia to
the Green Bay area, bringing much-needed new pipeline infrastructure
to eastern Wisconsin. The expansion and extension project, referred to
as Guardian II, would bring an additional 537,200 Dth/d of capacity to
eastern Wisconsin. Capital costs are estimated to range between $220
million and $240 million, and construction would begin after approval
by the Federal Energy Regulatory Commission, which is expected in late
2007. The project is targeted for completion in November 2008. The
partnership is currently engaged in the FERC's pre-filing process for
the project and anticipates filing an application with the FERC this
fall.
Northern Border Partners, L.P. is a publicly traded partnership
that owns and operates: natural gas gathering and processing
facilities; natural gas liquids gathering, fractionation,
transportation, and storage; and inter- and intra-state natural gas
pipelines. Its general partner is ONEOK, Inc., a diversified energy
company, which owns 45.7 percent of the partnership. ONEOK is one of
the largest natural gas distributors in the United States, and its
energy services operation focuses primarily on marketing natural gas
and related services throughout the U.S. More information may be found
at http://www.northernborderpartners.com.
This press release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. Although Northern Border
Partners, L.P. believes that its expectations are based on reasonable
assumptions, it can give no assurance that such expectations will be
achieved. Important factors that could cause actual results to differ
materially from those in the forward-looking statements include:
timely receipt of right-of-way, regulatory clearances and approval for
the expansion project; our ability to promptly obtain all necessary
materials and supplies required for construction; timely completion of
construction; competitive conditions in the overall natural gas
market; performance of contractual obligations by the shippers; and
our ability to control operating costs.