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NGC CLOSES MERGER WITH CHEVRON MIDSTREAM BUSINESSES.



HOUSTON--(BUSINESS WIRE)--Sept. 3, 1996--NGC Corporation shareholders approved on Friday the merger of NGC NGC New General Catalogue (of Nebulae and Star Clusters; astronomy)
NGC National Geographic Channel (TV)
NGC National Guideline Clearinghouse
 Corporation with Chevron Corporation's Natural Gas Business Unit and Warren Petroleum Company.

The merger, which closed on Saturday Aug. 31, creates the largest natural gas and natural gas liquids marketer in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. .

"NGC begins business today as North America's leading total energy marketer," said Chuck Watson, chairman and chief executive officer. "We have expanded dramatically our ability to be a multi-commodity provider of the products and services that make up our Energy Store. Our goal now is clear: to be not only the largest, but also the best provider of quality, competitively priced energy products and services to our customers and deliver strong earnings growth to our shareholders."

Watson said that the merger:

- Significantly increases NGC's natural gas marketing sales

volumes from approximately 6.0 billion cubic feet per day

(Bcf/d) to approximately 10 Bcf/d.

- Virtually quadruples sales volumes of natural gas liquids from

120,000 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day.  (Bpd) to 470,000 Bpd.

- Increases the number of gas processing plants from 33 to 57

- Increases NGC's interests in natural gas gathering and

transmission pipelines from 10,000 miles to approximately

15,000 miles.

- Expands NGC's natural gas liquids storage capacity from

approximately 12 million barrels to 60 million barrels.

- Increases the number of import/export marine terminals from

one to three, which offer importers and exporters

multiple solutions for moving products to market.

- Adds ten natural gas liquids terminals to NGC's asset base.

The shareholder vote was the last step toward completing the merger that was announced Jan. 22. For its contribution of its midstream mid¬∑stream ¬†
n.
1. The middle part of a stream.

2. The part of a course that is neither at the beginning nor at the end: the midstream of life.

Noun 1.
 businesses and assets, Chevron receives approximately 38.6 million new shares of NGC common stock and approximately 7.8 million shares of participating preferred stock Participating Preferred Stock

A type of preferred stock that, under certain conditions, gives holders the right to receive earnings payouts over and above the specified dividend rate.
 in the new company. Chevron also receives approximately $285 million in cash and notes, which takes into account certain purchase price adjustments contained in the merger documents. Chevron and NGC's two current major shareholders, British Gas British Gas is the name of several companies
  • British Gas plc the former gas monopoly in the United Kingdom and its successor companies.
  • Centrica plc which has the rights to the British Gas
, plc and NOVA Corp. will each own approximately 25 percent of NGC's common stock.

NGC's primary businesses are:

Natural Gas Clearinghouse (Clearinghouse), the largest natural gas marketer in North America combines Chevron's Natural Gas Business Unit, formerly the fourth largest natural gas marketer in North America, with Clearinghouse, formerly the second largest natural gas marketer in North America. The new premier gas marketer will hold a 14 percent share of the North American North American

named after North America.


North American blastomycosis
see North American blastomycosis.

North American cattle tick
see boophilusannulatus.
 market. Under the merger agreement, Clearinghouse will supply natural gas to Chevron's North American corporate facilities.

Warren Petroleum Company, L.P., NGC's natural gas liquids division, combines NGC's former Trident division with Chevron's Warren Petroleum. NGC's Trident was the largest independent gas liquids operation in North America. With the assets of Warren, the Warren, The

Haredale’s house, “mouldering to ruin.” [Br. Lit.: Barnaby Rudge]

See : Decadence
 combined new company will be the largest marketer and second largest processor of natural gas liquids in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Under the merger agreement, Warren will supply gas liquids and feedstocks to Chevron's refineries and chemical plants throughout North America.

Electric Clearinghouse, Inc. (ECI ECI Employment Cost Index
ECI Election Commission(er) of India
ECI Enterprise Content Integration
ECI Early Childhood Intervention
ECI Environmental Change Institute
) is NGC's wholesale purchaser, transporter and marketer of electricity. ECI will, in some locations, market Chevron's excess power generation capacity and will, in some cases, provide electric power to Chevron's North American facilities.

NGC Oil Trading and Transportation, Inc. (NOTTI), NGC's crude oil business, offers a full range of crude oil value-added marketing services to producers and customers.

NGC Global Energy, NGC's international division, will take advantage of opportunities around the globe as foreign energy markets are deregulated and NGC can offer its expertise as an experienced energy commodity marketer.

NGC Corporation (NYSE NYSE

See: New York Stock Exchange
:NGL NGL - A dialect of IGL. ) is a leading gatherer, processor, transporter and marketer of energy products and services in North America and the United Kingdom. Through its "Energy Store," NGC offers a multi-commodity energy-product-and-services resource that provides natural gas, natural gas liquids, electricity and crude oil.

CONTACT: NGC Corporation, Houston

Media Contact: Katherine K. Putnam, 713/507-3936

Analyst Contact: R. Dean Ayers, 713/507-6852
COPYRIGHT 1996 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1996, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Sep 3, 1996
Words:658
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