Seneca Resources Signs Purchase and Sale Agreement for Canadian Properties
August 07 2007 - 4:42PM
Business Wire
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 1-800-334-2188. * 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.
National Fuel Gas (NYSE:NFG)
Historical Stock Chart
From Aug 2024 to Sep 2024
National Fuel Gas (NYSE:NFG)
Historical Stock Chart
From Sep 2023 to Sep 2024