EXHIBIT 99.1
[LOGO OF US PROPANE]
US Propane
P.O. Box 650205
Dallas, Texas 75265-0205
972-855-3766
Contacts: See End of Release
US PROPANE TO MERGE OPERATIONS WITH HERITAGE HOLDINGS, INC.
TO CREATE NATION'S FOURTH LARGEST PROPANE DISTRIBUTOR
Dallas, TX -- June 15, 2000 -- US Propane, LLC announced today that
it will combine with Heritage Holdings, Inc., the general partner of
Heritage Propane Partners, L.P. (NYSE: HPG), to create the fourth
largest retail propane distributor in the United States. Through a
series of transactions, US Propane will be the general partner in a
master limited partnership that will distribute propane to over 480,000
customers in 28 states.
The transaction is expected to be accretive to the cash flows of
Heritage Propane Partners as well as to each of the US Propane
partners. If the projected results are achieved, the Board of Directors
of Heritage Holdings should be in a position to consider an increase in
the cash distributions to Heritage Propane Partners unitholders.
Heritage Propane Partners, a publicly traded master limited
partnership, currently operates 170 locations throughout the United
States and is recognized as one of the most successful propane
distributors in the industry. US Propane, a joint venture announced
earlier this year to consolidate the propane operations of four
Southeastern propane companies, has approximately 80 locations in
Alabama, Florida, Georgia, Kentucky, North Carolina, South Carolina and
Tennessee.
Under the agreements, US Propane will sell its propane business to
Heritage Propane Partners for approximately $181 million in cash and
limited partnership units of Heritage Propane Partners. US Propane
will purchase all of the outstanding common stock of Heritage Holdings,
the general partner of Heritage Propane Partners for $120 million.
Upon closing of the transaction, expected later this summer, US Propane
will own all of the general partnership interest and an approximate 34%
limited partnership interest in Heritage Propane Partners, the master
limited partnership. Shares of the general partner will be held
proportionately among the four companies that formed US Propane earlier
this year - AGL Resources (NYSE: ATG); Atmos Energy Corporation (NYSE:
ATO); TECO Energy (NYSE: TE); and Piedmont Natural Gas Company, Inc.
(NYSE: PNY).
"In just a matter of a few months, we will have transformed four,
relatively small propane operations to a major regional player and now
to an even larger national player," said US Propane Chief Operating
Officer Larry Dagley. "In combining our operations, we've found a
creative way to achieve scale and maximize the value of our propane
holdings." Dagley added that combining the propane operations into one
partnership creates a significant market presence that allows the group
to pursue major accounts on a national level and also balance the
seasonal and weather-related demand fluctuations on a broader scale.
Dagley said a key benefit of the arrangement is that the Heritage
management team, recognized as one of the best in the industry, will
remain with the combined company as both managers and significant
owners. James E. Bertelsmeyer will continue as Chairman of Heritage
Holdings, the general partner of Heritage Propane Partners. H. Michael
Krimbill, Chief Executive Officer and R. C. Mills, Chief Operating
Officer, of Heritage Holdings, will continue in those positions for the
combined company. The management team will be joined by Larry J.
Dagley, who will become the Chief Financial Officer, a role that was
previously vacant. Dagley was formerly Executive Vice President and
Chief Financial Officer of Atmos Energy Corporation prior to being
named Chief Operating Officer of US Propane. After the transaction,
management will own an approximate 20% limited partnership interest in
Heritage Propane Partners.
The board of directors of Heritage Holdings will be expanded to 13
members, two from each of the venture members of US Propane, two inside
directors and three independent directors.
US Propane is being advised by PaineWebber Incorporated in both this
transaction and the formation of the initial joint venture. Lehman
Brothers acted as financial advisor to the Special Committee of the
Board of Directors of the General Partner of Heritage Propane Partners,
in connection with the transaction.
More.
Atmos Energy Corporation of Dallas, Texas, distributes natural gas and
propane to more than one million customers in 13 states through its
operating divisions - Energas Company, Greeley Gas Company, Trans
Louisiana Gas Company, United Cities Gas Company, Western Kentucky Gas
Company and United Cities Propane Gas, Inc. Atmos recently completed
its acquisition of the Missouri distribution assets of Southwestern
Energy Corporation and recently announced that it plans to acquire
Louisiana Gas Service Company. Once the Louisiana Gas Service Company
acquisition is completed, Atmos will become the fifth largest pure
natural gas LDC in the United States with approximately 1.4 million
customers. Atmos Energy's Internet address is www.atmosenergy.com.
AGL Resources Inc. is a regional energy holding company with operations
in the Southeast. Atlanta Gas Light Company, the largest natural gas
distributor in the Southeast and the company's primary subsidiary,
provides delivery service to more than 1.5 million customers in Georgia
and full natural gas service in the Chattanooga area of Tennessee. AGL
Resources is also engaged in other energy-related businesses, including
retail energy marketing, customer care services for energy marketers,
and wholesale and retail propane sales. AGL Resources recently signed
a definitive agreement to acquire Virginia Natural Gas. The transaction
is anticipated to close no later than December 31, 2000. AGL
Resources' Internet address is www.aglresources.com.
Piedmont Natural Gas Company, Inc. is an energy and services company
primarily engaged in the transportation, distribution and sale of
natural gas and the sale of propane to over 710,000 residential,
commercial and industrial customers in North Carolina, South Carolina
and Tennessee. The Company is the second-largest natural gas utility
in the Southeast, serving over 660,000 natural gas customers in the
Carolinas and Tennessee. The Company and its non-utility subsidiaries
and divisions are also engaged in acquiring, marketing, transporting
and storing natural gas for large-volume customers, in retailing
residential and commercial gas appliances and in the sale of propane to
over 48,000 customers in the Company's three-state service area. An
unregulated subsidiary of the Company is an equity participant in a
venture that is marketing natural gas to an additional 505,000
customers in Georgia, the first state in the venture's eight-state
southeastern market to open to retail competition for natural gas.
TECO Energy is a diversified, energy-related holding company
headquartered in Tampa. Principal businesses include Tampa Electric
Company, an electric utility serving more than 550,000 customers in
West Central Florida; Peoples Gas, Florida's largest natural gas
supplier; TECO Power Services, which builds, owns and operates electric
generation facilities in the United States and Central America; TECO
Transport, a river and ocean transportation business. Other TECO
Energy businesses include TECO Coal, TECO Coalbed Methane, and Bosek,
Gibson and Associates.
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 or Section 21E of
the Securities Exchange Act of 1934. These statements reflect current
views made in good faith with respect to future events and performance.
Actual results may differ materially from those suggested in any such
forward-looking statements as a result of certain factors. The factors
that could cause actual results to differ materially from those
projected in these forward-looking statements include the ability to:
successfully complete both the transaction and the US Propane joint
venture; effectively integrate the different operations and produce
synergies; obtain unitholder approval following the closing of the
transaction; and effect transactions that will contribute to the growth
of the business.
Contacts: AGL Resources Media Contact:
US Propane Investor and Nick Gold (404) 584-3457 or 800-291-9649
Media Contact:
Larry Dagley (972) 855-3766
Piedmont Natural Gas Investor Contact:
Atmos Energy Investor Contacts: Headen Thomas (704) 364-3483 ext. 6438
Lynn Hord (972) 855-3729
Carol Knies (972) 855-3116 Piedmont Natural Gas Media Contact:
Steve Conner (704) 364-3483 ext. 6205
Atmos Energy Media Contact:
Randy Hicks (972) 855-3720 TECO Energy Investor Contact:
Mark Tubb (813) 228-1772
AGL Resources Investor Contacts:
Melanie Platt (404) 584-3420 TECO Energy Media Contact:
Joe Heffron (404) 584-3427 Laura Plumb (813) 228-1572
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