Wednesday, February 18, 2009

OGE Energy, Energy Transfer terminate joint venture

OKLAHOMA CITY and DALLAS - OGE Energy Corp. and Energy Transfer Partners, L.P. announced on Feb. 12 that they have terminated their agreement to form a joint venture that would have combined OGE's Enogex midstream business with ETP's Transwestern, and Mid-Continent Express interstate assets and Canyon Resources gathering operations.
Announced in September 2008, the transaction would have created a joint venture with diverse business lines and an expansive geographic platform to pursue growth opportunities in midstream and interstate natural gas pipeline operations. However, OGE and ETP agree that the significant downturn in the national economy and resulting uncertainty in the capital markets have made it unfeasible to complete the formation of the joint venture at this time.
"We believe strongly in the strategic merits of the ETP Enogex joint venture, but conditions in the financial markets are such that any partnership completed in the near term would not likely be economically beneficial to OGE," said Pete Delaney, OGE chairman, president and CEO. "While we intend to revisit the possibility of a partnership again when conditions are more favorable, both companies remain well positioned to move forward with their business plans."
"We regret that the capital markets have prevented us from accomplishing our plans to combine these businesses in a strategic joint venture," said Kelcy Warren, ETP Chairman and CEO. "We have developed a good relationship with, and have a great amount of respect for, the management of OGE, and we look forward to pursuing other opportunities with OGE in the future."

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