Northern Border (NYSE:NBP)
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From Jul 2019 to Jul 2024
Northern Border Partners, L.P. (NYSE:NBP) announced
today that it will purchase additional 66 2/3 percent interests in
Guardian Pipeline, L.L.C. for approximately $77 million. The interests
are currently held by Wisconsin Energy Corporation (NYSE:WEC) (33 1/3
percent) and a subsidiary of WPS Resources Corporation (NYSE:WPS) (33
1/3 percent). The purchase is expected to close by the end of April
2006, subject to receipt of all necessary approvals. Following
completion of the transaction, Northern Border Partners, through its
subsidiaries, will own 100 percent of Guardian Pipeline, L.L.C.
Guardian Pipeline is a 143-mile interstate natural gas pipeline
system that commenced service in December 2002. It is currently
capable of transporting 750,000 dekatherms per day (Dth/d) of natural
gas from Joliet, Illinois to Ixonia, Wisconsin.
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. The expansion would bring an additional 537,200
Dth/d of capacity to eastern Wisconsin. Two major Wisconsin utility
companies have entered into natural gas transportation agreements to
support the project. Capital costs are estimated to range between $200
million and $250 million and construction could begin after approval
by the Federal Energy Regulatory Commission, which is expected in late
2007. The project is targeted for completion in November 2008.
"We are excited about the opportunity to own 100 percent of the
existing Guardian pipeline as well as the opportunity to build, own
and operate Guardian's expansion and extension to Green Bay.
Consolidating Guardian's ownership adds strategic benefits to the
Partnership as well as significant fee-based revenue under long-term
contracts," said Bill Cordes, chief executive officer of Northern
Border Partners. "As we move forward with this project, we are pleased
to be a part of new pipeline infrastructure that will provide natural
gas customers in Wisconsin with the necessary choices to support
growth and competition."
Upon completion of the transaction, Guardian's financial results
will be consolidated and reported in the Partnership's interstate
pipeline segment instead of reflected as equity earnings of
unconsolidated affiliates on the income statement.
Operating income and depreciation expense for Guardian for the
full year 2006 are expected to be $20 million to $23 million, and $6
million to $7 million, respectively.
Northern Border Partners, L.P. is a publicly traded partnership
whose purpose is to own, operate and acquire a diversified portfolio
of energy assets. The Partnership owns and manages natural gas
pipelines and is engaged in the gathering and processing of natural
gas. More information may be found at
http://www.northernborderpartners.com.
Wisconsin Energy Corporation, based in Milwaukee, is a Fortune 500
energy company serving more than 1.1 million electric customers in
Wisconsin and Michigan's Upper Peninsula, and more than one million
natural gas customers in Wisconsin. The company's principal utilities
are We Energies and Edison Sault Electric. The company's nonutility
businesses include energy development, recycling and renewable energy,
and real estate development.
One of the Midwest's premier energy companies, Wisconsin Energy
Corporation (www.wisconsinenergy.com) has more than 5,300 employees,
approximately 56,000 registered stockholders and more than $10 billion
of assets.
Wisconsin Public Service Corporation, a wholly owned subsidiary of
WPS Resources Corporation, is an investor-owned electric and natural
gas utility headquartered in Green Bay, Wisconsin. It serves
approximately 420,000 electric customers and 309,000 retail natural
gas customers in residential, agricultural, industrial, and commercial
markets, as well as wholesale customers. The company's service area
includes northeastern and central Wisconsin, as well as an adjacent
portion of Upper Michigan. Information is available online at
www.wisconsinpublicservice.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:
approval of the Hart-Scott-Rodino Act filing by the Federal Trade
Commission of the acquisition and satisfaction of other closing
conditions; receipt of certain approvals from the parties to the
precedent agreements; 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; and performance of
contractual obligations by the shippers.