Printer Friendly

KCS Energy, Inc. Announces Unfavorable Texas Jury Verdict

EDISON, N.J., Nov. 25 /PRNewswire/ -- KCS Energy, Inc. (NYSE: KCS) today announced it received the verdict of the jury in a civil trial concluded Friday, November 23, 1996, in the District Court of Zapata County, Texas in its previously disclosed litigation with Tennessee Gas Pipeline Company ("TGT") concerning the alleged enrichment by KCS of natural gas produced from Company-operated wells in the Bob West Field and sold to TGT. The alleged enrichment occurred during the period from November 1993 to November 1994.

In its verdict, the jury awarded TGT $143.2 million including approximately $114 million for punitive damages.

KCS President and Chief Executive Officer, James W. Christmas said, "We are shocked and very disappointed with the jury's verdict on this matter and plan to file a motion to have the verdict set aside and, if necessary, to file a motion for a new trial. If those motions are denied, we plan to file an appeal with the Texas Court of Appeals and post the necessary supersedeas bond. We believe that the jury's verdict was not supported by the facts and is inconsistent with applicable law. We believe we acted fully within our rights under the contract and that our gas met contract specifications."

The jury's verdict in no way affects current or future sales of gas from Company-operated and non-operated wells covered by the contract with TGT, which runs through January 1999, and only sales made from Company-operated wells during the period in question are affected. The terms of the contract were upheld in previous judicial ratings favoring KCS.

"As a result of the jury's verdict, the previously announced public offering of common stock and the pending acquisition of the oil and gas operations of MidAmerican Energy Company will be delayed and may possibly be terminated," said Mr. Christmas.

KCS is an independent energy company primarily engaged in the acquisition, exploration, development and production of natural gas and crude oil. The Company also operates natural gas transportation and marketing businesses.

SOURCE KCS Energy, Inc.
 -0- 11/25/96


/CONTACT: Henry A. Jurand, VP & CFO of KCS Energy, Inc., 908-632-1770; or General Info: Marianne Stewart, Analyst Info: Christina Howard, or Media Info: Judith Sylk-Siegel, all of The Financial Relations Board, 212-661-8030/

(KCS)

CO: KCS Energy, Inc.; Tennessee Gas Pipeline Company ST: New Jersey, Texas IN: OIL SU:

HD-TL -- NYM063 -- 3600 11/25/96 10:04 EST http://www.prnewswire.com
COPYRIGHT 1996 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1996 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 25, 1996
Words:401
Previous Article:Coinmach Corporation Announces Senior Bank Financing Commitment
Next Article:Premiere Issue of 'Family Circle's Computers Made Easy' Attracts a Dozen Blue Chip Advertisers
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters