Vectren Sells Gas Marketing Business Supplying End-Users

Vectren Corporation announced that effective June 18, 2013, ProLiance Holdings, LLC has disposed of certain of the net assets, along with the long term pipeline and storage commitments, of its wholesale natural gas marketing subsidiary, ProLiance Energy, LLC, to a subsidiary of Energy Transfer Partners.

Among various other wholesale marketing functions, ProLiance serves 2,000 commercial and industrial customers.

Vectren had previously sold its retail energy marketing subsidiary, Vectren Source, to Direct Energy.

ProLiance is jointly owned by affiliates of Vectren (61% ownership) and Citizens Energy Group (39% ownership).

Vectren cited market conditions for disposing of the wholesale marketing business, and said that it would focus on growing its infrastructure and energy services businesses.

Upon final adjustments for working capital, costs and fees associated with the disposition of these net assets, ProLiance expects to record a loss of between ($62) million and ($67) million. Vectren's after-tax share of the net loss to be recorded in its second quarter of 2013 is expected to be between ($26) million and ($28) million. The loss associated with the disposition by Vectren's unconsolidated subsidiary, ProLiance, has no material cash flow impact to Vectren.

Following the disposition of these net assets, ProLiance's remaining investment of $15 million relates to three physical storage and pipeline assets, of which two have now been sold, and $35 million in a minority joint venture with Sempra Energy in a development project in Louisiana for a salt-cavern natural gas storage facility near the Cameron LNG facility that has been referred to previously as Liberty Gas Storage (Liberty). ProLiance continues to monitor its investment in Liberty.