GREEN BAY, Wis., March 30 /PRNewswire-FirstCall/ -- WPS Resources Corporation announced today that it has sold its one-third interest in Guardian Pipeline, L.L.C. to Northern Border Partners, L.P. for $38.5 million, which should result in an after tax gain for WPS Resources of approximately $3.7 million. The purchase is expected to close by the end of April 2006, subject to receipt of all necessary approvals.
"Our investment in Guardian Pipeline generated positive returns for our company," said Larry Weyers, Chairman, President, and Chief Executive Officer of WPS Resources. "When Northern Borders approached us regarding the sale of our interest in the pipeline, we thought it was a good opportunity for WPS Resources to redeploy the proceeds into other investment opportunities providing value to our shareholders."
Guardian Pipeline owns a 143-mile interstate natural gas pipeline system running from Joliet, Illinois, to Ixonia, Wisconsin, that began service in December 2002, and is capable of transporting 750,000 dekatherms per day of natural gas. In May 2003, WPS Resources acquired a one-third interest in Guardian Pipeline for $26 million. At that time, the project partners each owned one-third of the project and included Wisconsin Energy Corporation, Viking Gas Transmission Company (an affiliate of Northern Border Intermediate Limited Partnership), and WPS Resources (through its subsidiary, WPS Investments, LLC). Both WPS Resources and Wisconsin Energy are selling their interests to Northern Border Partners, which gives Northern Border Partners 100 percent of Guardian Pipeline, L.L.C. On February 7, 2006, Guardian announced that it plans to expand and extend the existing pipeline approximately 106 miles from Ixonia, Illinois, to the Green Bay, Wisconsin, area. The sale would provide Northern Borders with 100% ownership of the pipeline and enhance the ability to successfully complete the expansion project. The planned expansion will bring an additional 537,200 dekatherms per day of natural gas capacity to eastern Wisconsin.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. You can identify these statements by the fact that they do not relate strictly to historical or current facts and often include words such as "anticipate," "expect," "intend" and other similar words. Forward-looking statements are beyond the ability of WPS Resources to control and, in many cases, WPS Resources cannot predict what factors would cause actual results to differ materially from those indicated by forward-looking statements. Please see WPS Resources' periodic reports filed with the Securities and Exchange Commission (including its 10-K and 10- Qs) for a listing of certain factors that could cause actual results to differ materially from those contained in forward-looking statements.
About WPS Resources Corporation
WPS Resources Corporation , based in Green Bay, Wisconsin, is a holding company with four major subsidiaries providing electric and natural gas energy and related services in both regulated and nonregulated energy markets. Its principal subsidiary is Wisconsin Public Service Corporation, a regulated electric and natural gas utility serving northeastern Wisconsin and a portion of Michigan's Upper Peninsula. Wisconsin Public Service serves more than 425,000 electric customers and 308,000 natural gas customers. Another subsidiary, Upper Peninsula Power Company, is a regulated electric utility serving Michigan's Upper Peninsula. Upper Peninsula Power serves approximately 52,000 electric customers.
WPS Resources' major nonregulated subsidiary consists of WPS Energy Services, Inc., a diversified nonregulated energy supply and services company serving commercial, industrial and wholesale customers and aggregated groups of residential customers. Its principal market is the northeast quadrant of the United States and adjacent portions of Canada. Its principal operations are in Illinois, Maine, Michigan, Ohio, Texas, Virginia, and Wisconsin in the United States and Alberta, Ontario, and Quebec in Canada. WPS Energy Services also owns and/or operates nonregulated electric generation facilities in Wisconsin, Maine, Pennsylvania, New York, and New Brunswick, Canada; steam production facilities in Arkansas and Oregon; a partial interest in a synthetic fuel processing facility in Kentucky, and steam production facilities located in Arkansas and Oregon.
