Kinder Morgan to Divest Pipeline Assets
Friday, March 16, 2012
Kinder Morgan Inc. plans to sell major pipeline assets to win Federal Trade Commission (FTC) permission for its US$21 billion acquisition of El Paso Corp.
That deal, announced last October, has been approved by El Paso stockholders and is expected to be completed by late May.
Kinder Morgan has agreed to sell Kinder Morgan Interstate Gas Transmission, Trailblazer Pipeline Co., the Casper-Douglas natural gas processing plant and West Frenchie Draw gas treating facilities in Wyoming, U.S.A., and the company’s 50% interest in the Rockies Express Pipeline.
Chairman and CEO Richard Kinder said, “We would prefer to retain all of these assets, but as we anticipated when the transaction was announced, we must sell certain assets in the Rockies to obtain FTC approval. The amount of divestitures is reasonably consistent with our original financial model.”
In late February, El Paso arranged to sell its exploration and production business, EP Energy Corp., for US$7.15 billion to affiliates of Apollo Global Management LLC and Riverstone Holdings, LLC, Access Industries Inc. and other parties.
For more information: www.kindermorgan.com