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Duke prices gas spin off



By Upstream staff 

Duke Energy, which announced the spin-off of its natural gas businesses in June, today valued the new gas company's total capitalisation at about $15.37 billion.

It said this includes about $6.17 billion of equity, $8.71 billion of debt, and other items.

In a filing with the Securities & Exchange Commission, Duke said the new company, which it is temporarily referring to as Gas SpinCo, had $21.1 billion of assets as of 30 June.

Gas SpinCo, which is expected to trade on the New York Stock Exchange, will own about 17,500 miles of natural gas pipeline, a 50% stake in the largest natural gas liquids producer in North America, and natural gas sales and distribution service to retail customers in Ontario, Canada, Duke said.

It said it is targeting a 1 January spin-off for the gas company, but has not yet determined the distribution ratio.

Gas SpinCo currently expects to pay a dividend of about 60% of its annual net income per share, the company said.


Thursday, 07 September, 2006, 13:05 GMT  | last updated: Thursday, 07 September, 2006, 13:05 GMT

Cashed up: Gas SpinCo
 

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