1
FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event Reported) May 3, 2000
----------------
COLUMBIA ENERGY GROUP
---------------------
(Exact name of registrant as specified in its charter)
Delaware 1-1098 13--1594808
- ---------------------------- ------------- ------------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
13880 Dulles Corner Lane, Herndon, VA 20171-4600
------------------------------------------------
(Address of principal executive offices)
Registrant's telephone number, including area code (703) 561-6000
----------------
2
Item 5. Other Events
Information contained in a News Release dated May 3, 2000 is
incorporated herein by reference.
3
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Columbia Energy Group
------------------------------
(Registrant)
By /s/ J. W. Grossman
----------------------------
Vice President & Controller
Date: May 3, 2000
4
FOR IMMEDIATE RELEASE CONTACTS:
May 3, 2000 News Media: R.A. Rankin, Jr. (703) 561-6044
Michael McGarry (703) 561-6063
Financial Community: Thomas L. Hughes (703) 561-6001
Melissa E. Bockelmann (703) 561-6011
COLUMBIA ENERGY GROUP TO SELL LNG OPERATIONS
TO WILLIAMS GAS PIPELINE
HERNDON, Va., May 3 -- Columbia Energy Group announced today that its LNG
subsidiaries have agreed to sell their partnership interests in the Cove Point
LNG Limited Partnership to subsidiaries of Williams Gas Pipeline for
approximately $150 million. The transaction, subject to clearance under the
Hart-Scott-Rodino Act, and certain other conditions, is expected to be completed
by July 2000.
The Columbia subsidiaries and affiliates--Columbia LNG Corporation,
CLNG Corporation and Columbia Atlantic Trading--through Cove Point LNG own and
operate a liquefied natural gas storage and marine terminal near Lusby, Md., and
an 87-mile natural gas pipeline connecting the terminal with gas pipelines in
Northern Virginia. The terminal, which has a send-out capacity of one billion
cubic feet of gas per day, currently provides peak shaving services to customers
in the mid-Atlantic and Southeastern regions of the United States. Cove Point
LNG is in the process of concluding an open season for firm terminal capacity to
be used for liquefied natural gas imports.
"In our ongoing evaluation of the LNG business," said Oliver G. Richard
III, Columbia Energy Group chairman, president and CEO, " it has become clear
that the business, although attractive, is not at the core of Columbia's
long-term strategy, and that we could achieve more value for our shareholders by
selling this asset than by continuing to operate it. The transaction announced
today will achieve this objective."
Columbia Energy Group, based in Herndon, Va., is one of the nation's
leading energy services companies, with assets of approximately $7 billion. Its
operating companies engage in virtually all phases of the natural gas business,
including exploration and production, transmission, storage and distribution, as
well as retail energy marketing, propane and petroleum product sales, and
electric power generation. Information about Columbia Energy Group (NYSE:CG) is
available on the Internet at www.columbiaenergygroup.com.
This press release contains "forward-looking statements" within the
meaning of the Federal securities laws, including statements concerning
Columbia's, Columbia LNG's and Williams' plans, objectives and expected
performance. There can be no assurance that actual results will not differ
materially due to various factors, many of which are beyond the control of the
companies, including, but not limited to, market conditions and competition.
# # #