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TRANSCO TO SELL GAS GATHERING AND RELATED FACILITIES FOR $65 MILLION

TRANSCO TO SELL GAS GATHERING AND RELATED FACILITIES FOR $65 MILLION
 HOUSTON, June 8 /PRNewswire/ -- Transco Energy Company (NYSE: E) has executed definitive agreements with Deeptech International, Inc. for the sale of Transco's interests in certain gas gathering and related facilities to Deeptech for $65 million. Included are Transco's various ownership interests in the HIOS and UTOS systems, the Green Canyon Pipeline and the Louisiana Offshore Pipeline System. As a result of the sale, the company will record a charge to earnings of $5.2 million after-tax, or $0.17 per share, in the second quarter of 1992. Proceeds of the sale will be used to retire debt.
 Transco Chairman, President and Chief Executive Officer John P. DesBarres said, "With the closing of this transaction we will have surpassed the goal of selling $100 million of 'non- essential' assets as part of our strategic and financial restructuring plan."
 DesBarres noted that this sale, in conjunction with other completed and pending transactions, brings the company's total asset sales to $115 million since the plan was announced. "Importantly, these sales have been accomplished on a schedule consistent with that envisioned in the original development of our plan," he said.
 "We're pleased with the continued success of our strategic and financial plan," DesBarres continued. "In the last five months, we have settled our last significant take-or-pay litigation, modified our bank credit agreements, filed a registration statement for the sale of $300 million of Transco Energy Company notes and begun actively marketing our offshore oil and gas assets. We remain fully committed to the completion of the plan, including the sale of equity when appropriate."
 DesBarres concluded, "These actions will substantially improve our financial flexibility and assure that we have the needed borrowing capacity to fund all of our capital requirements, including seasonal working capital needs later this summer. Further, these steps will help revitalize earnings through the sale of non-strategic assets, reduction in interest expense and in better positioning the company for growth in its remaining core businesses."
 Transco Energy Company transports natural gas through its interstate pipeline systems to markets in the eastern and midwestern United States, arranges for the transportation and sale of natural gas throughout the United States, and is active in independent power generation and natural gas vehicle fueling services. Transco also maintains modest positions in other energy-related businesses.
 -0- 6/8/92
 /CONTACT: Katherine K. Putnam-media, 713-439-2455, or R. Dean Ayers -analyst, 713-439-2593, both of Transco Energy Company/
 (E) CO: Transco Energy Company; Deeptech International, Inc. ST: Texas IN: OIL SU: TNM


TQ -- NY055 -- 7975 06/08/92 13:26 EDT
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Publication:PR Newswire
Date:Jun 8, 1992
Words:433
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