WILLIAMSVILLE, N.Y., August 7 /CNW/ - National Fuel Gas Company (NYSE:
NFG) (the "Company") today announced that its Exploration and Production unit,
Seneca Resources Corporation ("Seneca") has signed a purchase and sale
agreement to sell its subsidiary, Seneca Energy Canada Inc. ("SECI") to NAL
Oil & Gas Trust for approximately U.S.$234.3 million (at a conversion of $1.05
Canadian to $1.00 U.S.). The sale has an effective date of July 1, 2007, and
is expected to close by September 30, 2007.(*)
The sale is expected to result in a non-recurring gain of approximately
$120 million, after tax, which will be reported in the Company's fourth
quarter, which closes on September 30, 2007.(*)
In April, Seneca announced that it had retained a financial advisor to
assist in the sale of this subsidiary and its associated properties in the
western provinces of Canada. After reviewing several competitive bids, NAL Oil
& Gas Trust's bid was accepted.
"We are pleased to have completed this transaction. After determining
that the SECI properties were no longer a strategic fit for Seneca's
operations, the next task was to divest those holdings in a fashion that would
protect shareholder value. We believe that this sale accomplishes that goal
and look forward to focusing on Seneca's properties in the Gulf of Mexico,
Appalachia and California in order to maximize their potential for growth and
development," said Philip C. Ackerman, Chairman and Chief Executive Officer,
National Fuel Gas Company.
National Fuel is an integrated energy company with $3.8 billion in assets
comprised of the following five operating segments: Utility, Pipeline and
Storage, Exploration and Production, Energy Marketing, and Timber. Additional
information about National Fuel is available on its Internet Web site:
nationalfuelgas.com or through its investor information service at
(*) Certain statements contained herein, including those which are
designated with an asterisk ("(*)") and those which use words such as
"anticipates," "estimates," "expects," "intends," "plans," "predicts,"
"projects," and similar expressions, are "forward-looking statements" as
defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve risks and uncertainties, which could cause
actual results or outcomes to differ materially from those expressed in the
forward-looking statements. The Company's expectations, beliefs and
projections contained herein are expressed in good faith and are believed to
have a reasonable basis, but there can be no assurance that such expectations,
beliefs or projections will result or be achieved or accomplished. In addition
to other factors, the following are important factors that could cause actual
results to differ materially from those discussed in the forward-looking
statements: changes in economic conditions, including economic disruptions
caused by terrorist activities, acts of war or major accidents; physical
damage or alteration to the assets of SECI that would have a material adverse
effect on the aggregate value of those assets; significant closing adjustments
to the purchase price; changes in the exchange rate between Canadian and U.S.
dollars; changes in the availability and/or price of derivative financial
instruments; governmental/regulatory actions, initiatives and proceedings;
ability to obtain any necessary governmental approvals or permits; delays in
closing the transaction; significant changes in tax rates or policies; changes
in accounting principles or the application of such principles to the Company;
or the cost and effects of legal and administrative claims against SECI,
Seneca or the Company. The Company disclaims any obligation to update any
forward-looking statements to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.
For further information:
For further information: National Fuel Gas Company Analysts: James C.
Welch, 716-857-6987 or Media: Julie Coppola Cox, 716-857-7079