Exhibit 99.1 - Press release issued September 16, 2003
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SEMCO ENERGY
28470 13 Mile Road Suite 300
Farmington Hills, MI 48334
FOR IMMEDIATE RELEASE
ANALYSTS CONTACT: THOMAS CONNELLY
DIRECTOR OF INVESTOR RELATIONS
Phone: 248-702-6240
FAX: 248-702-6303
E-mail: thomas.connelly@semcoenergy.com
MEDIA CONTACT: FRANCIS R. LIEDER, JR.
DIRECTOR OF CORPORATE COMMUNICATIONS & MEDIA AFFAIRS
Phone: 810-987-2200 Ext. 4186
Fax: 810-989-4098
E-mail: francis.lieder@semcoenergy.com
SEMCO ENERGY TO SELL ALASKA PIPELINE COMPANY
FARMINGTON HILLS, MI, September 16, 2003, SEMCO ENERGY, Inc. (NYSE:SEN)
and Atlas Pipeline Partners, L.P. (AMEX:APL) today announced that SEMCO has
entered into a definitive agreement to sell Alaska Pipeline Company (APC) to
Atlas Pipeline Partners, L.P. for $95 Million.
APC owns and operates the high-pressure gas pipelines that transport gas
from Alaska's Cook Inlet gas fields to ENSTAR Natural Gas Company's distribution
system and various commercial customers of ENSTAR. ENSTAR is a division of
SEMCO ENERGY, serving 112,000 customers in south-central Alaska, including
Anchorage. APC has no employees and ENSTAR is APC's only customer.
Atlas Pipeline Partners, L.P. owns and operates natural gas pipeline
gathering systems through its operating partnership and its operating
subsidiaries. Its primary asset consists of approximately 1,380 miles of
intrastate gathering systems located in eastern Ohio, western New York and
western Pennsylvania.
The sale is structured to have no effect on ENSTAR's customers or
employees. ENSTAR will purchase all of APC's gas transmission capacity for at
least 10 years and will operate APC's pipelines for a minimum of 5 years. There
are no plans to change rates, the services offered, pipeline operations,
customer service, gas supply, or staffing as a result of the sale. The sale is
subject to various regulatory approvals, including approval by the Regulatory
Commission of Alaska. McDonald Investments Inc. acted as adviser to SEMCO ENERGY
in the transaction.
"SEMCO ENERGY's mission is to provide excellent service to its customers
and an attractive investment return to its shareholders. We have been pursuing
actions, including the sale of certain Company assets, that will pay down debt
in order to improve the financial position and thus the long-term value of the
Company. The proceeds from the sale of APC will be used to reduce debt and is
consistent with the goal of improving our capital structure," said Marcus
Jackson, SEMCO ENERGY Chairman, President and Chief Executive Officer.
Michael Staines, President and Chief Operating Officer of Atlas, expressed
his pleasure at reaching this agreement and said "Atlas is aware of the
importance of APC's pipeline system to south-central Alaska and looks forward to
participating in the continuing development of the pipelines necessary to serve
ENSTAR's customers."
SEMCO ENERGY, Inc. distributes natural gas to more than 385,000 customers
combined in Michigan, as SEMCO ENERGY GAS COMPANY, and in Alaska, as ENSTAR
Natural Gas Company. It owns and operates businesses involved in natural gas
pipeline construction services, propane distribution, intrastate pipelines and
natural gas storage in various regions of the United States. In addition, it
provides information technology and outsourcing services, specializing in the
mid-range computer market.