OGE Energy and Energy Transfer Partners have terminated their agreement to form a joint venture that would have combined OGE’s Enogex midstream business with Energy Transfer Partners’s Transwestern, and Mid-Continent Express interstate assets and Canyon Resources gathering operations.
Announced in September 2008, the transaction would have created a joint venture (JV) with diverse business lines and an expansive geographic platform to pursue growth opportunities in midstream and interstate natural gas pipeline operations.
OGE Energy (OGE) and Energy Transfer Partners (ETP) agree that the significant downturn in the national economy and resulting uncertainty in the capital markets have made it unfeasible to complete the formation of the JV at this time.
OGE and ETP originally expected to complete the formation of the JV after obtaining satisfactory financing, customary regulatory approvals and various third-party consents, having agreed to a March 31, 2009, deadline to complete the transaction. The parties determined that given current conditions and projections for the near term, it is in their mutual interest to terminate the JV agreement.
