TECO Energy subsidiary signs agreement to exit the propane business
TAMPA, November 7, 2003
Sale of company's interests will secure $50 million
TECO Energy today announced that its TECO Propane Ventures subsidiary, along with affiliates of Atmos Energy Corporation, Piedmont Natural Gas Company, Inc. and AGL Resources, Inc., has entered into an agreement to sell its general partnership and limited partnership interests in Heritage Propane Partners, LP (NYSE: HPG) in a transaction valued at $130 million. TECO Energy expects to receive $50 million from the transaction and to record an $18-million pre-tax book gain.
The planned sales are part of a larger transaction involving the merger of Energy Transfer Company, a privately held, natural gas mid-stream player and Heritage Propane Partners. Closing is conditional upon financing and regulatory approvals, which are expected before the end of the year.
Chairman and CEO Robert Fagan said, "As a small interest in an unregulated industry, our propane business is not one of our core areas of emphasis. This transaction will further our efforts to refocus on our core utility operations, Tampa Electric and Peoples Gas System."
TECO Energy, Inc. (NYSE: TE) is a diversified energy-related holding company based in Tampa. Principal businesses include Tampa Electric, Peoples Gas, TECO Transport, TECO Coal and TECO Solutions.