EXHIBIT 99.1
Sempra Energy and K N Energy Terminate Merger Agreement

Media Contacts:                        Analyst Contacts:
Doug Kline                             Clem Teng
Sempra Energy                          Sempra Energy
(877) 866-2066                         (877) 736-7727
www.sempra.com

Larry Pierce                           Steven P. Eshbach
K N Energy                             K N Energy
(303) 914-4751                         (303) 763-3618
www.kne.com

     SAN DIEGO and LAKEWOOD, Colo., June 21, 1999 -- Sempra Energy
(NYSE:SRE) and K N Energy, Inc. (NYSE:KNE) today announced that they
have mutually agreed to terminate their merger agreement, announced
Feb. 22, 1999.

     Sempra Energy and K N Energy indicated that, as they worked
through the integration process, it became clear that the combined
company would not be able to realize the business objectives that
they originally anticipated. As a result, Sempra Energy and K N
Energy agreed that it was more prudent for both companies to pursue
their business objectives individually.

     In connection with the termination, Sempra Energy and K N
Energy entered into a confidential termination and release agreement
on June 20, 1999, whereby they have agreed to release each other
from any claims relating to the proposed merger, to refrain from
soliciting the employees of one another for a two-year period, and
to refrain from acquiring any stock of or making any proposals to
acquire the other party for a three-year period. In addition, in
order to amicably terminate the transaction, Sempra Energy agreed to
reimburse K N Energy for a portion of its expenses incurred in
connection with the proposed merger in the amount of $5.95 million.

     K N Energy, Inc., based in Lakewood, Colorado, is the nation's
sixth-largest integrated natural gas company with more than $8
billion in total assets and is one of the largest pipeline operators
with more than 25,000 miles of pipe. It has operations in 16 states,
including natural gas gathering, processing, marketing, storage,
transportation, energy commodity sales -- natural gas and natural
gas liquids; electric generation design, construction and operation;
and innovative services designed for consumers, utilities and
commercial entities.

     Sempra Energy, based in San Diego, is a Fortune 500 energy
services holding company with 12,000 employees, revenues of $5.5
billion and more than 6 million natural gas and electric meters
serving 21 million customers. Through its eight principal
subsidiaries -- Southern California Gas Company, San Diego Gas &
Electric, Sempra Energy Trading, Sempra Energy Solutions, Sempra
Energy International, Sempra Energy Resources, Sempra Energy Utility
Ventures and Sempra Energy Financial -- Sempra Energy provides a
broad range of energy-related products and services. The company has
operations throughout the United States, Canada, Mexico and Latin
America.

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