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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) SEPTEMBER 28, 1998
MCN ENERGY GROUP INC
(Exact name of registrant as specified in its charter)
MICHIGAN 1-10070 38-2820658
State of Incorporation (Commission File (I.R.S. Employer
Number) Identification No.)
500 GRISWOLD STREET, DETROIT, MICHIGAN 48226
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(313) 256-5500
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Item 5. Other Events
On September 28, 1998 MCN Energy Group Inc. issued the following press release:
MCN ENERGY GROUP ANNOUNCES
ORGANIZATIONAL REALIGNMENT, COST SAVINGS
Detroit, Sept. 28, 1998 -- MCN Energy Group Inc. (NYSE:MCN) today said it is
putting into place a corporate realignment that is expected to remove
approximately $15 million a year from its current operating expenses. In
addition to cost savings at the corporate level and at the company's MCN
Investment Corporation (MCNIC) subsidiary, the realignment establishes a more
streamlined organizational structure to enhance efficiency, lines of authority
and internal customer responsiveness.
The new structure includes the reassignment of several key personnel.
Lee Dow, senior vice president, treasurer and chief financial officer (CFO) at
MCN's Michigan Consolidated Gas Company (MichCon) subsidiary, assumes the
additional post of senior vice president and treasurer at the corporate level.
Dow will have responsibility for MCN's investor relations, corporate finance,
accounting, planning and tax functions. Stewart Lawrence, previously manager
of external communications, has been named director of investor relations. He
replaces Thomas Connelly, who has been appointed MCN general auditor. In
addition, Vice Chairman and CFO William K. McCrackin has announced his
intention to retire effective at the company's annual meeting in April 1999, at
which time Dow will add the CFO title and responsibilities.
"The realignment is designed to place MCN back on a course of earnings
growth," MCN Chairman, President and CEO Alfred R. Glancy III said. "The cost
savings will improve margins not just for the coming year, but for the long
term."
Glancy said the realignment will consolidate functions previously
conducted at the MCN, MCNIC and MichCon levels. A restructuring charge of
approximately $10 million, pre-tax, is expected to be recovered by year-end in
relation to these actions. Not included in these reductions are organizational
changes related to MCNIC's exploration and production (E&P) business, which
the company has said it intends to sell in part or in its entirety. The E&P
properties currently are being grouped into four packages to be presented for
bids from interested buyers by year-end.
"We have additional decisions to make regarding MCN's strategic direction
moving forward," Glancy said. "Today, however, we have accomplished two key
steps to get MCN back on track. First, we have identified meaningful
and permanent cost reductions, and second, we have established a new, more
streamlined corporate structure."
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Glancy said the management team is in place, ready to implement the
realignment and cost-savings plans. "Our team is fully assembled, comprised of
talented managers who have many years of experience with the company and the
energy industry," he said. "A smooth transition is laid out for Lee Dow to
assume CFO responsibilities, and we are pleased to have Stewart Lawrence
leading our investor relations efforts, since communicating our strategy will
be a crucial element in creating shareholder value."
Dow joined MichCon's regulatory affairs department in 1979 after
working three years for Arthur Andersen & Co. He has held various positions of
increasing responsibility in MichCon's regulatory, planning and marketing
areas. He was appointed CFO and elected to MichCon's Board of Directors in
1995. Dow has a Bachelor of Science degree in business administration from
Central Michigan University and is a Certified Public Accountant.
Lawrence joined MCN's investor relations department in September
1996. He has 11 years of financial communications experience covering all
segments of the energy business, including positions with Tesoro Petroleum Corp.
in San Antonio, Panhandle Eastern Corp. (PanEnergy) in Houston, and Mesa
Limited Partnership in Amarillo, Texas. Lawrence has a Bachelor of Arts degree
and a Master of Business Administration in finance and management from the
University of Houston.
Connelly joined Michcon's financial reporting department in 1979
after working three years for Ernst & Young. He as held various positions
of increasing responsibility in the accounting, finance, planning and investor
relations areas of MCN and MichCon. Connelly has a Bachelor of Science degree
in accounting from Central Michigan University and has worked as a Certified
Public Accountant.
MCN Energy Group Inc. is a diversified energy holding company with more than $4
billion of assets, and with markets and investments throughout North America and
in Asia. The company operates through two major business groups: Diversified
Energy, operating through MCN Investment Corporation, is involved in oil and
gas exploration and production, natural gas gathering, transmission, processing
and storage, energy marketing, electric power generation and distribution, and
other energy-related businesses; Gas Distribution consists principally of
Michigan Consolidated Gas Company, a natural gas distribution and transmission
company serving 1.2 million customers in more than 500 communities throughout
Michigan. Information about MCN Energy Group is available on the World Wide
Web at http://www.mcnenergy.com.
Statements included in this news release that are not historical in nature are
forward-looking within the meaning of the Private Securities Litigation Reform
Act of 1995. These statements involve certain risks and uncertainties that may
cause actual future results to differ materially from those contemplated,
projected, estimated or budgeted in such forward-looking statements. A
discussion of these risks and uncertainties is included in the company's
periodic reports filed with the Securities and Exchange Commission.
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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.
MCN ENERGY GROUP INC.
Date: September 29, 1998 By: /s/ Howard L. Dow III
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Howard L. Dow III
Senior Vice President and Treasurer