NEW YORK--(BUSINESS WIRE)--April 14, 2003--
Loews to Hold Conference Call Today at 11:00 a.m. EDT
Loews Corporation (NYSE:LTR) today announced that it has entered
into an agreement to purchase Texas Gas Transmission Corporation from
The Williams Companies, Inc. (NYSE:WMB).
The transaction value is $1.045 billion, which includes $795
million in cash to be paid to Williams and $250 million in debt that
will remain at Texas Gas. The closing of the transaction, which is
expected to occur in early June 2003, is subject to normal and
customary conditions, including the filing of notification under the
Hart-Scott-Rodino antitrust law.
Texas Gas owns and operates a 5,800-mile pipeline system that
transports natural gas from the Gulf Coast, east Texas and north
Louisiana to markets in the southern United States through the
Midwest. Texas Gas has a delivery capacity of 2.8 billion cubic feet
(Bcf) per day and a working storage capacity of 55 Bcf. In 2002, the
company reported net income of $56 million on revenues of $267
million.
James Tisch, CEO of Loews, commented on the acquisition, "Texas
Gas is a highly attractive asset with an experienced and capable
management team, and we are pleased that it will become a subsidiary
of Loews. The transaction should be accretive to earnings per share
and provide very attractive free cash flow to Loews."
Loews intends to issue additional debt at the subsidiary level
immediately following the acquisition of Texas Gas. It is anticipated
that this recapitalization would bring the debt-to-total capital ratio
of Texas Gas to approximately 50 percent.
Conference Call at 11:00 a.m. Today
Loews will hold a conference call at 11:00 a.m. EDT, Monday, April
14, 2003, to discuss the planned acquisition of Texas Gas. A live
broadcast of this conference call will be available online at the
Loews website (www.loews.com). Please go to the website at least 10
minutes before the event begins to register and to download and
install any necessary audio software. Those interested in
participating in the question and answer session of the conference
call should dial (888) 896-0863. An online replay will be available at
the Company's website for one week following the call.
Loews Corporation, a holding company, is one of the largest
diversified financial corporations in the United States. Its principal
subsidiaries are CNA Financial Corporation, Lorillard, Inc., Diamond
Offshore Drilling, Loews Hotels, and Bulova Corporation.
Forward-Looking Statements. Statements in this press release that
contain "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 include, but are not limited
to, statements using the words "believes", "expects", "plans",
"intends", "should" and similar expressions, and other statements
concerning the Company's future plans, objectives, and expected
performance. 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: any adverse impact on Texas Gas as a
result of it no longer being a part of the Williams Companies gas
pipeline operations; domestic demand for natural gas; Texas Gas's
reliance on Gulf Coast natural gas supplies; extensive competition
from other regional pipelines; economic and political changes in
markets where the Texas Gas competes, such as regulation, inflation
rates, and other external factors over which the Company has no
control; and the outcome of contingencies (including completion of the
acquisition, arranging financing and regulatory approval). 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.
The Company 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.
CONTACT: Loews Corporation, New York
Peter W. Keegan, 212/521-2950
Candace Leeds, 212/521-2416
or
Investor Relations:
Joshua E. Kahn, 212/521-2788
SOURCE: Loews Corporation
