FARMINGTON HILLS, Mich., Sept. 16 /PRNewswire-FirstCall/ -- SEMCO ENERGY,
Inc. (NYSE: SEN) and Atlas Pipeline Partners, L.P. (Amex: APL) today announced
that SEMCO has entered into a definitive agreement to sell Alaska Pipeline
Company (APC) to Atlas Pipeline Partners, L.P. for $95 Million.
APC owns and operates the high-pressure gas pipelines that transport gas
from Alaska's Cook Inlet gas fields to ENSTAR Natural Gas Company's
distribution system and various commercial customers of ENSTAR. ENSTAR is a
division of SEMCO ENERGY, serving 112,000 customers in south-central Alaska,
including Anchorage. APC has no employees and ENSTAR is APC's only customer.
Atlas Pipeline Partners, L.P. owns and operates natural gas pipeline
gathering systems through its operating partnership and its operating
subsidiaries. Its primary asset consists of approximately 1,380 miles of
intrastate gathering systems located in eastern Ohio, western New York and
The sale is structured to have no effect on ENSTAR's customers or
employees. ENSTAR will purchase all of APC's gas transmission capacity for at
least 10 years and will operate APC's pipelines for a minimum of 5 years.
There are no plans to change rates, the services offered, pipeline operations,
customer service, gas supply, or staffing as a result of the sale. The sale
is subject to various regulatory approvals, including approval by the
Regulatory Commission of Alaska. McDonald Investments Inc. acted as adviser
to SEMCO ENERGY in the transaction.
"SEMCO ENERGY's mission is to provide excellent service to its customers
and an attractive investment return to its shareholders. We have been
pursuing actions, including the sale of certain Company assets, that will pay
down debt in order to improve the financial position and thus the long-term
value of the Company. The proceeds from the sale of APC will be used to
reduce debt and is consistent with the goal of improving our capital
structure," said Marcus Jackson, SEMCO ENERGY Chairman, President and Chief
Michael Staines, President and Chief Operating Officer of Atlas, expressed
his pleasure at reaching this agreement and said "Atlas is aware of the
importance of APC's pipeline system to south-central Alaska and looks forward
to participating in the continuing development of the pipelines necessary to
serve ENSTAR's customers."
SEMCO ENERGY, Inc. distributes natural gas to more than 385,000 customers
combined in Michigan, as SEMCO ENERGY GAS COMPANY, and in Alaska, as ENSTAR
Natural Gas Company. It owns and operates businesses involved in natural gas
pipeline construction services, propane distribution, intrastate pipelines and
natural gas storage in various regions of the United States. In addition, it
provides information technology and outsourcing services, specializing in the
mid-range computer market.
SOURCE SEMCO ENERGY, Inc.