Airgas Announces Divestiture of Jackson Dome Carbon Dioxide Reserves and Pipeline.Business Editors RADNOR, Pa.--(BUSINESS WIRE)--Jan. 18, 2001 Airgas, Inc. (NYSE NYSE See: New York Stock Exchange :ARG See argument. arg - argument ) announced today that it has signed an agreement to sell its Jackson Dome carbon dioxide carbon dioxide, chemical compound, CO2, a colorless, odorless, tasteless gas that is about one and one-half times as dense as air under ordinary conditions of temperature and pressure. reserves and pipeline to Denbury Resources Inc. for $42 million. The agreement includes a long-term contract for the continued supply of carbon dioxide to Airgas' Star, Mississippi Star, Mississippi, is a small unincorporated community in Rankin County, southeast of Jackson in the U.S. state of Mississippi. Its ZIP code is 39167. liquid carbon dioxide facility. The company anticipates the transaction will close in February. The sale will generate after-tax cash proceeds of approximately $34 million and will be neutral to earnings going forward. Annual revenues from the divested operation are roughly $7 million. "The sale of these non-core assets will generate significant capital that will be used to reduce debt," commented Peter McCausland, Airgas' chairman and chief executive officer. "Carbon dioxide remains an important product for Airgas. The long-term supply contract assures Airgas continued access to a strategically valuable carbon dioxide source while the sale eliminates the risks and capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. associated with ownership of a non-core asset." About Denbury Resources, Inc. Denbury Resources Inc. (NYSE:DNR See dynamic noise reduction and domain name resolver. ) is a growing, independent oil and gas company. The company is the largest oil and natural gas operator in Mississippi and holds key operating acreage in the onshore Louisiana and offshore Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east areas. The Company increases the value of acquired properties in its core areas through a combination of exploitation drilling and proven engineering extraction practices. About Airgas, Inc. Airgas, Inc. is the largest distributor of industrial, medical and specialty gases and related equipment and one of the largest distributors of safety supplies in the United States. Airgas' integrated distributor network consists of approximately 700 locations, including branches, packaged gas fill plants, distribution centers, and inbound and outbound telemarketing operations. Airgas can be visited on the Internet at www.airgas.com. Forward Looking Statements This press release contains forward-looking statements about Airgas within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, including statements regarding the benefits to be derived by Airgas from its agreement with Denbury Resources, Inc., the reduction of company debt and the impact of the divestiture on current and future earnings. These forward-looking statements involve risks and uncertainties. Factors that could cause actual results to differ materially from those predicted in any such forward-looking statement Airgas' ability to complete the transaction with Denbury, Denbury's ability to supply products according to contract terms, termination of the agreement with Denbury and unanticipated costs associated with the transaction and in connection with the future purchase of carbon dioxide from Denbury. These and other risks are detailed from time to time in Airgas' periodic reports filed with the Securities and Exchange Commission, including, but not limited to, its report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for its fiscal year ended March 31, 2000, and Forms 10-Q for the fiscal quarters ended June 30, 2000 and September 30, 2000. |
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