Phillips and Duke Energy Close Transaction

Petroleum News Alaska Staff

Phillips Petroleum Co. and Duke Energy said April 3 that they have closed the transaction combining Duke Energy’s gas gathering and processing business with Phillips’ gas gathering, processing and marketing unit.

The new company, Duke Energy Field Services, has about 400,000 barrels per day of natural gas liquids production.

In connection with the combination, Duke Energy Field Services will borrow approximately $2.75 billion of short-term debt which will be used for one-time cash distributions of approximately $1.2 billion to both Phillips and Duke Energy and to pay $325 million to Duke Energy and $20 million to Phillips as reimbursement for the acquisition of additional assets since the combination agreement was signed in December.

Jim W. Mogg, previously president and chief executive officer of Duke Energy’s gathering and processing business, assumed the position of chairman, president and chief executive officer of the new company. Michael Panatier, president and chief executive of Phillips’ gas gathering, processing and marketing unit prior to the combination, has been appointed vice chairman of the new company.