United Gas Corporation

United Gas Corporation
Company typePublic company
IndustryPetroleum
FoundedShreveport, Louisiana (March 29, 1930 (1930-03-29))
FounderN.C. McGowen[1]
DefunctApril 1, 1968 (1968-04-01)
FateAcquired (December 17, 1965)
SuccessorPennzoil
Headquarters
Shreveport, Louisiana
Area served
Gulf South
Key people
Productsnatural gas, condensate, gasoline, petroleum products, gold, silver, copper, potash, and sulphur[4]
Subsidiaries
Not to be confused with United Gas Improvement Corporation.

United Gas Corporation was a major oil company from its inception in 1930 to its hostile takeover and subsequent forced merger with Pennzoil in 1968.[6][7][8] Headquartered in Shreveport, Louisiana, United and its major subsidiaries, Union Producing Company, United Gas Pipeline Company, Atlas Processing, UGC Instruments, and Duval Mining, performed integrated exploration, production, processing, and distribution of oil and natural gas and other raw materials.[5][9][10] Second only to Gulf Oil in size and scope, United Gas was one of the first natural gas transmission companies.[6] In 1968, United was merged into Pennzoil, and the firm was renamed Pennzoil United, Inc.[9][11] The retail gas distribution assets of United were spun off into Entex Energy in 1970.[9][12] United Gas Pipeline stock was distributed to Pennzoil shareholders in 1974, and that company was eventually restructured as United Energy Resources, Inc., which was, in turn, acquired by Midcon Corporation.[9][13][14]

Through purchase of Benson-Lehner Corporation of Van Nuys, California, and the Telecomputing Services (TSI) product line of the Whittaker's Data Instruments, North Hollywood, California, which became its fully owned subsidiaries, United Gas was engaged in missile business and various other defense activities related to the U.S. aerospace industry.[15] In particular, it operated data processing centers for military and civil government agencies, including White Sands Missile Range missile test data analyzing, provided processing services for Strategic Air Command 1st Missile Division at Vandenberg Air Force Base, etc.

At the time of its takeover by Pennzoil, United operated the busiest pipeline network in the United States, carrying 8% of the nation's supply, and was eight times the size of its buyer.[9][11][16][17][18] The dramatic takeover, accomplished by a cash tender offer using vast amounts of borrowed money and United's own assets as collateral, was the first of its kind in the United States, and, together with the subsequent asset spin-off, the event is a classic example of the leveraged buyout and corporate raid and resulted in numerous lawsuits and regulatory investigations.[11][17][18][19][20]

  1. ^ "Joanne Sigler: United Gas was 'the place of employment'". Shreveport Times. September 8, 2010. Archived from the original on August 9, 2015.
  2. ^ a b Securities and Exchange Commission (1 May 1964). "SEC News Digest" (PDF). Retrieved 2014-07-05.
  3. ^ "Alumni and Friends | COLLEGE OF ENGINEERING | University of Arkansas". engr.uark.edu. Retrieved 2014-05-26.
  4. ^ The Evening Independent, February 1, 1967, "United Gas Has Record Income" https://news.google.com/newspapers?nid=950&dat=19670201&id=gkhQAAAAIBAJ&sjid=N1cDAAAAIBAJ&pg=2847,203057
  5. ^ a b c d e f United Gas Corp. v. Pennzoil Co., 248 F.Supp. 449 (S.D.N.Y. 1965)
  6. ^ a b Hughes, Dudley J. (1993). Oil in the Deep South: A History of the Oil Business in Mississippi, Alabama, and Florida: 1859–1945. Jackson, Mississippi: University Press of Mississippi. pp. 61–62. ISBN 978-0-8780-5615-6.
  7. ^ United Gas Corp. v. Pennzoil Co., 248 F.Supp. 449 (S.D.N.Y. 1965) http://www.leagle.com/decision/1965697248FSupp449_1615.xml/UNITED%20GAS%20CORPORATION%20v.%20PENNZOIL%20COMPANY
  8. ^ La. Power & Light Co. v. United Gas Pipeline Company, 478 So.2d 1240 (La. Ct. App. 1985)
  9. ^ a b c d e Odintz, Mark (June 15, 2010). Pennzoil. Texas State Historical Association. {{cite encyclopedia}}: |work= ignored (help)
  10. ^ "Love Her and Leave Her: —That, say the critics, is just what the Liedtke brothers did with United Gas" Forbes, Sept. 15, 1974 p. 54-57
  11. ^ a b c "Pennzoil Company - Lehman Brothers Collection". library.hbs.edu. Retrieved 2014-05-26.
  12. ^ "Timeline (1866-Present)". centerpointenergy.com. Retrieved 2014-05-26.
  13. ^ "Midcon to Buy United Energy for $1 Billion : Merger to Create Second National Pipeline System - Los Angeles Times". Los Angeles Times. 13 August 1985. Retrieved 2014-05-26.
  14. ^ "Occidental Merger OKd - Los Angeles Times". Los Angeles Times. 16 February 1986. Retrieved 2014-05-26.
  15. ^ Mergers and Acquisitions. // Missiles and Rockets, March 22, 1965, v. 16, no. 12, p. 39.
  16. ^ "Retirement Ends Era At Pennzoil | News OK". newsok.com. Retrieved 2014-07-05.
  17. ^ a b Martin, Douglas (August 1, 2003). "J. Hugh Liedtke, 81, Oilman Who Bested Texaco in Court". The New York Times.
  18. ^ a b Forbes, Sept. 15, 1974 p. 54-57
  19. ^ "Pennzoil founder Liedtke leaves behind legacy in oil industry - Houston Business Journal". bizjournals.com. Retrieved 2014-05-26.
  20. ^ "Shell bids to absorb Pennzoil - Houston Business Journal". bizjournals.com. Retrieved 2014-07-05.