Divesting of Peoples Energy Production Company CHICAGO, Feb. 21
/PRNewswire-FirstCall/ -- Integrys Energy Group, Inc. announced
that the merger involving WPS Resources Corporation (NYSE:WPS) and
Peoples Energy Corporation (NYSE:PGL) was completed, effective
February 21, 2007. The newly combined company is a diversified
energy company serving four Midwest states through its regulated
utility operations. Integrys Energy Group also operates
nonregulated energy-related businesses in various markets in the
United States and Canada. Shareholders of Peoples Energy as of the
close of business today, February 21, 2007, will receive 0.825
shares of WPS Resources common stock for each common share of
Peoples. Simultaneous with the completion of the merger, WPS
Resources changed its name to Integrys Energy Group, Inc. and its
ticker symbol will change to TEG at the start of trading on
February 22, 2007. "We would like to thank our customers,
shareholders, employees, and regulators for their support in
combining these two companies," stated Larry Weyers, President and
CEO of Integrys Energy Group. "We look forward to finding
opportunities to better serve our customers, to realize best
business practices, to provide solid returns to our shareholders,
and to act as good corporate citizens in the markets in which we
operate." "Our integration teams have worked very hard, and plans
are in place to ensure our new customers experience a seamless
transition," added Weyers. "Integrys Energy Group will be focused
on providing excellent customer service and achieving operational
excellence across all of its businesses to provide value to all
stakeholders." Integrys Energy Group expects potential annual
synergies of $94 million from the merger. These synergies are
estimated to be achieved over a five- year time horizon. One-time
costs to obtain these synergies are anticipated to be approximately
$186 million over the same period. In connection with the
completion of the merger, trading in Peoples Energy's common stock
will be suspended as of the close of trading today, and Peoples
Energy will withdraw the listing of its common stock from the New
York Stock Exchange and the Chicago Stock Exchange as soon as
practical. Peoples Energy will now be a wholly owned subsidiary of
Integrys Energy Group. In a further development, Weyers announced,
"Based upon the results of our asset management evaluation
announced on July 10, 2006, we have decided to proceed with the
divestiture of Peoples Energy Production Company. The divestiture
will allow Integrys Energy Group to focus on our core competencies,
reduce or eliminate external financing requirements, and reduce
Integrys Energy Group's risk profile. We have selected J. P. Morgan
Securities, Inc. as our financial advisor in this divestiture. They
will be providing more detailed information to those interested
parties who desire to participate in the divestiture process within
the next few weeks. We anticipate the divestiture should be
completed by the end of 2007." In accordance with the merger
agreement, Integrys Energy Group expanded its board of directors to
16, including the 9 existing WPS Resources' board members and 7
former Peoples Energy board members. The former Peoples Energy
board members joining the Integrys Energy Group board are: James R.
Boris, Non-executive Chairman of the Board, 62 Pastora San Juan
Cafferty, 66 Michael E. Lavin, 60 William J. Brodsky, 62 Keith E.
Bailey, 64 Diana S. Ferguson, 43 John W. Higgins, 60 They will be
joined by WPS Resources' board of directors: Richard A. Bemis, 65
Albert J. Budney, Jr., 59 Ellen Carnahan, 51 Robert C. Gallagher,
68 Kathryn M. Hasselblad-Pascale, 58 James L. Kemerling, 67 John C.
Meng, 62 William F. Protz, Jr. 62 Larry L. Weyers, 61 As previously
announced, the members of the management team leading Integrys
Energy Group are: Integrys Energy Group, Inc. (the holding
company): Boris Brevnov, 38, Vice President - Development Kathy
Donofrio, 49, Vice President - Strategic Planning Peter Kauffman,
60, Corporate Secretary and Chief Governance Officer Tom Meinz, 60,
Executive Vice President, External Affairs Phil Mikulsky, 59,
Executive Vice President and Chief Development Officer Joe O'Leary,
52, Senior Vice President and Chief Financial Officer Jim Schott,
49, Vice President - Regulatory Affairs Rodrigo Sierra, 46, Vice
President - Public Affairs Bud Treml, 57, Senior Vice President and
Chief Human Resources Officer Larry Weyers, 61, President and Chief
Executive Officer Operating Companies: Regulated Businesses: Larry
Borgard, 45, President and Chief Operating Officer - Integrys Gas
Group Chuck Cloninger, 48, President, Minnesota Energy Resources
Corporation Gary Erickson, 64, President, Michigan Gas Utilities
Corporation Desiree Rogers, 46, President, The Peoples Gas Light
and Coke Company; and President, North Shore Gas Company Charlie
Schrock, 53, President of Wisconsin Public Service Corporation
Nonregulated Businesses: Steve Nance, 49, President, Peoples Energy
Production Company Mark Radtke, 45, President, Integrys Energy
Services, Inc. Business Support Services: Tom Nardi, 52, President,
Integrys Business Support, LLC The companies will continue their
strong civic, community, and philanthropic presence in their
respective markets. Conference Call Integrys will hold a conference
call to discuss this announcement today, February 21, 2007, at 10
a.m. Central Time (11 a.m. Eastern Time). To listen to the call,
please dial 888-690-9634, 15 minutes before the start time; the
pass code for the call is "WPS Resources." A presentation will
accompany the discussion and is available at http://www.wpsr.com/,
as well as at http://www.peoplesenergy.com/. A replay of the call
can also be accessed by dialing 800-801-6152. The telephone replay
will be available through March 7, 2007. To listen to the call via
web cast or to replay it, visit the "Investor Information" section
of the WPS Resources Corporation website at http://www.wpsr.com/.
The webcast replay will be available through February 20, 2008.
About Integrys Energy Group, Inc. Integrys Energy Group, Inc.
(NYSE:TEG), headquartered in Chicago, Illinois, is a holding
company for energy related subsidiaries which includes regulated
utilities and nonregulated subsidiaries. The six regulated
utilities consist of: * The Peoples Gas Light and Coke Company is a
natural gas utility serving more than 820,000 customers in the City
of Chicago. * Wisconsin Public Service Corporation is a regulated
electric and natural gas utility serving more than 429,000 electric
customers and 311,000 natural gas customers in northeastern
Wisconsin and an adjacent portion of Michigan's Upper Peninsula. *
Minnesota Energy Resources Corporation is a natural gas utility
serving approximately 207,000 customers throughout Minnesota. *
Michigan Gas Utilities Corporation is a natural gas utility serving
approximately 166,000 customers in lower Michigan. * North Shore
Gas Company is a natural gas utility serving 158,000 customers in
the northern suburbs of Chicago. * Upper Peninsula Power Company is
an electric utility that serves approximately 52,000 customers in
Michigan's Upper Peninsula. The nonregulated subsidiaries include:
* Integrys Energy Services, Inc. is 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. Integrys Energy Services also owns and/or operates
nonregulated electric generation facilities. * Peoples Energy
Production Company is primarily engaged in the acquisition and
development of proven onshore natural gas reserves with upside
potential in a limited number of strategic supply basins. Value is
then added through drilling programs, production enhancements and
reservoir optimization. More information about Integrys Energy
Group, Inc. is available online at http://www.integrysgroup.com/.
Forward-Looking Statements This news 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," "may," "could," "project," "believe" and other
similar words. Forward-looking statements are beyond the ability of
Integrys Energy Group, Inc. to control and, in many cases, Integrys
Energy Group cannot predict what factors would cause actual results
to differ materially from those indicated by forward-looking
statements. Please see Integrys Energy Group's periodic reports
filed with the Securities and Exchange Commission (including their
10- Ks and 10-Qs) for listings of certain factors that could cause
actual results to differ materially from those contained in
forward-looking statements. All forward-looking statements included
in this news release are based upon information presently
available, and Integrys Energy Group does not assume any obligation
to update any forward-looking statements. DATASOURCE: Integrys
Energy Group, Inc. CONTACT: Joseph P. O'Leary, Investor Relations,
Senior Vice President and Chief Financial Officer, +1-920-433-1463;
or Donna M. Sheedy, Investor Relations, Manager Investor Relations,
+1-920-433-1857; or Thomas P. Meinz, Media, Executive Vice
President - External Affairs, +1-920-433-1293; or Rod Sierra,
Media, Vice President - Public Affairs, +1-312-240-4380 Web site:
http://www.wpsr.com/ http://www.peoplesenergy.com/
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