WPS Resources Corporation Sells Interest in Guardian Pipeline
March 30 2006 - 5:34PM
PR Newswire (US)
GREEN BAY, Wis., March 30 /PRNewswire-FirstCall/ -- WPS Resources
Corporation (NYSE:WPS) announced today that it has sold its
one-third interest in Guardian Pipeline, L.L.C. to Northern Border
Partners, L.P. (NYSE:NBP) for $38.5 million, which should result in
an after tax gain for WPS Resources of approximately $3.7 million.
The purchase is expected to close by the end of April 2006, subject
to receipt of all necessary approvals. "Our investment in Guardian
Pipeline generated positive returns for our company," said Larry
Weyers, Chairman, President, and Chief Executive Officer of WPS
Resources. "When Northern Borders approached us regarding the sale
of our interest in the pipeline, we thought it was a good
opportunity for WPS Resources to redeploy the proceeds into other
investment opportunities providing value to our shareholders."
Guardian Pipeline owns a 143-mile interstate natural gas pipeline
system running from Joliet, Illinois, to Ixonia, Wisconsin, that
began service in December 2002, and is capable of transporting
750,000 dekatherms per day of natural gas. In May 2003, WPS
Resources acquired a one-third interest in Guardian Pipeline for
$26 million. At that time, the project partners each owned
one-third of the project and included Wisconsin Energy Corporation,
Viking Gas Transmission Company (an affiliate of Northern Border
Intermediate Limited Partnership), and WPS Resources (through its
subsidiary, WPS Investments, LLC). Both WPS Resources and Wisconsin
Energy are selling their interests to Northern Border Partners,
which gives Northern Border Partners 100 percent of Guardian
Pipeline, L.L.C. On February 7, 2006, Guardian announced that it
plans to expand and extend the existing pipeline approximately 106
miles from Ixonia, Illinois, to the Green Bay, Wisconsin, area. The
sale would provide Northern Borders with 100% ownership of the
pipeline and enhance the ability to successfully complete the
expansion project. The planned expansion will bring an additional
537,200 dekatherms per day of natural gas capacity to eastern
Wisconsin. Forward-Looking Statements This press release contains
forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934. You can identify these statements
by the fact that they do not relate strictly to historical or
current facts and often include words such as "anticipate,"
"expect," "intend" and other similar words. Forward-looking
statements are beyond the ability of WPS Resources to control and,
in many cases, WPS Resources cannot predict what factors would
cause actual results to differ materially from those indicated by
forward-looking statements. Please see WPS Resources' periodic
reports filed with the Securities and Exchange Commission
(including its 10-K and 10- Qs) for a listing of certain factors
that could cause actual results to differ materially from those
contained in forward-looking statements. About WPS Resources
Corporation WPS Resources Corporation (NYSE:WPS), based in Green
Bay, Wisconsin, is a holding company with four major subsidiaries
providing electric and natural gas energy and related services in
both regulated and nonregulated energy markets. Its principal
subsidiary is Wisconsin Public Service Corporation, a regulated
electric and natural gas utility serving northeastern Wisconsin and
a portion of Michigan's Upper Peninsula. Wisconsin Public Service
serves more than 425,000 electric customers and 308,000 natural gas
customers. Another subsidiary, Upper Peninsula Power Company, is a
regulated electric utility serving Michigan's Upper Peninsula.
Upper Peninsula Power serves approximately 52,000 electric
customers. WPS Resources' major nonregulated subsidiary consists of
WPS Energy Services, Inc., a diversified nonregulated energy supply
and services company serving commercial, industrial and wholesale
customers and aggregated groups of residential customers. Its
principal market is the northeast quadrant of the United States and
adjacent portions of Canada. Its principal operations are in
Illinois, Maine, Michigan, Ohio, Texas, Virginia, and Wisconsin in
the United States and Alberta, Ontario, and Quebec in Canada. WPS
Energy Services also owns and/or operates nonregulated electric
generation facilities in Wisconsin, Maine, Pennsylvania, New York,
and New Brunswick, Canada; steam production facilities in Arkansas
and Oregon; a partial interest in a synthetic fuel processing
facility in Kentucky, and steam production facilities located in
Arkansas and Oregon. DATASOURCE: WPS Resources Corporation CONTACT:
Joseph P. O'Leary, Senior Vice President and Chief Financial
Officer of WPS Resources Corporation, +1-920-433-1463 Web site:
http://www.wpsr.com/
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