Piedmont will sell 50 percent of current interest in SouthStar to AGL Resources for $57.5 million CHARLOTTE, N.C., July 30 /PRNewswire-FirstCall/ -- Piedmont Energy Company, a subsidiary of Piedmont Natural Gas (NYSE:PNY) and Georgia Natural Gas Company, a subsidiary of AGL Resources (NYSE:AGL) today announced an agreement to restructure their ownership interests in SouthStar Energy Services (SouthStar). Under the terms of the agreement, Piedmont will sell half of its 30 percent interest in SouthStar to AGL Resources effective January 1, 2010, retaining a 15 percent earnings and ownership share in SouthStar after the sale. Piedmont will receive $57.5 million from AGL Resources resulting in an estimated one-time gain in 2010 of $0.41 per diluted share. The agreement, which has been approved by both companies' boards of directors, also resolves issues concerning AGL Resources' option to purchase Piedmont's ownership interest in SouthStar. As part of the agreement, AGL Resources will not have any further option rights to Piedmont's remaining 15% ownership interest. The agreement is subject to the approval and consent of the Georgia Public Service Commission. Commenting on the agreement, Piedmont's Chairman, President and CEO, Thomas E. Skains said, "We are pleased to conclude this agreement with AGL and believe our strategic interests in SouthStar will be more closely aligned as a result. This has been a good partnership for both of our companies and we value the relationship we have with AGL. The nature of this agreement, which will simplify and strengthen our joint venture involvement in SouthStar, also reaffirms the core focus of our business as the safe and efficient distribution of natural gas to our growing utility markets in North Carolina, South Carolina, and Tennessee." John W. Somerhalder II, AGL Resources' Chairman, President and CEO said, "Piedmont has always been a very good partner, and we look forward to continuing our longstanding relationship with them. We reached an agreement that works well for both companies in terms of providing certainty around the partnership structure and creating value for our respective shareholders." Forward-looking Statement This press release contains forward-looking statements. These statements are based on management's current expectations and information currently available and are believed to be reasonable and are made in good faith. However, the forward-looking statements are subject to future events, risks, uncertainties and other factors that could cause actual results to differ materially from those projected in the statements. Factors that may make the actual results differ from anticipated results include, but are not limited to, rate of customer growth, new legislation and regulations and application of existing laws and regulations, economic and capital market conditions, the cost and availability of natural gas, weather conditions and other uncertainties, all of which are difficult to predict and some of which are beyond our control. For these reasons, you should not rely on these forward-looking statements when making investment decisions. The words "expect," "believe," "project," "anticipate," "intend," "should," "could," "will," "assume," "can," "estimate," "forecast," "future," "indicate," "outlook," "plan," "predict," "seek," "target," "would," and variations of such words and similar expressions are intended to identify forward-looking statements. Forward-looking statements are only as of the date they are made and we do not undertake any obligation to update publicly any forward-looking statement, either as a result of new information, future events or otherwise. More information about the risks and uncertainties relating to these forward-looking statements may be found in Piedmont's latest Forms 10-K and 10-Q, which are available on the SEC's website at http://www.sec.gov/. About Piedmont Natural Gas Piedmont Natural Gas is an energy services company primarily engaged in the distribution of natural gas to more than one million residential, commercial and industrial utility customers in North Carolina, South Carolina and Tennessee, including 61,000 customers served by municipalities who are wholesale customers. Our subsidiaries are invested in joint venture, energy-related businesses, including unregulated retail natural gas marketing, interstate natural gas storage and intrastate natural gas transportation. Additional information about Piedmont is available on the Internet at http://www.piedmontng.com/. About AGL Resources AGL Resources (NYSE:AGL), an Atlanta-based energy services company, serves approximately 2.3 million customers in six states. The company also owns Houston-based Sequent Energy Management, an asset manager serving natural gas wholesale customers throughout North America. As a 70 percent owner in the SouthStar partnership, AGL Resources markets natural gas to consumers in Georgia under the Georgia Natural Gas brand. The company also owns and operates Jefferson Island Storage & Hub, a high-deliverability natural gas storage facility near the Henry Hub in Louisiana. For more information, visit http://www.aglresources.com/. DATASOURCE: Piedmont Natural Gas CONTACT: David L. Trusty - Media, +1-704-731-4391, , John Sutphin - Investor Relations, +1-704-731-4314, , both of Piedmont Natural Gas Company Web Site: http://www.piedmontng.com/

Copyright