The primary properties being acquired are located in the Permian
Basin in Texas, the Antrim Shale in Michigan and the Black Warrior
Basin in Alabama, with estimated proved reserves totaling
approximately 2.5 trillion cubic feet equivalent. These properties
produce predominantly natural gas and are characterized by long
reserve lives and high well completion success rates.
"These long-lived and low-risk natural gas producing assets
represent an excellent platform for Loews to enter the exploration and
production business," said James Tisch, Chief Executive Officer of
Loews. "We have a favorable long-term view of natural gas pricing in
the US and believe natural gas will increasingly be the fuel of choice
in the future."
"The new company will be led by Timothy Parker, currently Dominion
E&P's Senior Vice President of Exploration and Production, together
with an experienced and well-regarded team," Mr. Tisch continued. "We
are pleased to welcome Tim and his colleagues to Loews as part of our
Closing is expected to occur during the third quarter of 2007 and
is subject to customary conditions.
Analyst Conference Call on Monday, June 4 at 11:00 a.m. EDT
Loews will hold a conference call on Monday, June 4, 2007 at 11:00
a.m. EDT to discuss the planned acquisition. A live webcast of this
conference call will be available online at the Loews website
(www.loews.com). Those interested in participating in the question and
answer portion of the conference call should dial 877-692-2592, or for
international callers, 973-582-2757. The conference ID number is
Following the call, a replay will be available at www.loews.com or
by dialing 877-519-4471, or for international callers, 973-341-3080.
The telephone replay will be available through June 11, 2007.
Loews Corporation, a holding company, is one of the largest
diversified corporations in the United States. Its principal
subsidiaries are CNA Financial Corporation (NYSE: CNA); Lorillard,
Inc.; Boardwalk Pipeline Partners, LP (NYSE: BWP); Diamond Offshore
Drilling, Inc. (NYSE: DO); Loews Hotels; and Bulova Corporation.
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
Such statements are inherently subject to a variety of risks and
uncertainties that could cause actual results to differ materially
from those projected.
Important risk factors that could cause actual results to differ
include, but are not limited to: completion of the acquisition; future
changes in the price of domestic natural gas, including changes
resulting from fluctuations in demand or supply, such as increased
supplies of imported liquefied natural gas or supply disruptions
resulting from catastrophes or economic or political changes in
producing regions; the accuracy of reserve estimates; the Company's
ability to successfully operate the acquired business as a stand-alone
company, including the ability to attract and retain qualified
management and other employees; and other external factors over which
the Company has no control. A discussion of the additional risk
factors that could impact the Company's overall business and financial
performance can be found in the Company's reports filed with the
Securities and Exchange Commission. Copies of these reports are
available through the Company's website (www.loews.com). Given these
risk factors, investors and analysts should not place undue reliance
on forward-looking statements.
Loews Corporation expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statement to reflect any change in the Company's
expectations with regard thereto or any change in events, conditions
or circumstances on which any forward-looking statement is based.
SOURCE: Loews Corporation
Peter W. Keegan, 212-521-2950
Chief Financial Officer
Darren Daugherty, 212-521-2788
Candace Leeds, 212-521-2416