Kinder Morgan To Buy 50% Interest In Natural-Gas JV From KKR
April 25 2012 - 5:30PM
Dow Jones News
Natural-gas pipeline operator Kinder Morgan Energy Partners L.P.
(KMP) said it is taking full ownership of a natural-gas joint
venture by buying the 50% interest it doesn't already own from KKR
& Co. (KKR) for $300 million in KMP shares.
The joint venture was set up by KKR and El Paso Corp. (EP) at
the end of 2010, with KKR paying $125 million for half of El Paso's
Altamont gathering-and-processing assets.
The deal is expected to close by the end of May, subsequent to
the completion of Kinder Morgan Inc.'s (KMI) planned purchase of El
Paso. El Paso shareholders approved the $21.1 billion acquisition
in March. Kinder Morgan Inc. owns the general partner of Kinder
Morgan Energy Partners.
The joint venture pursues midstream developments in the Altamont
gathering in Utah and the Camino Real Gathering System in Texas.
The Altamont assets include more than 1,100 miles of pipelines, 60
million cubic feet per day of natural-gas processing capacity and
5,600 barrels per day of natural-gas liquids-fractionation
capacity, while the Camino Real system has 150 cubic feet per day
of gas-gathering capacity and 110,000 barrels per day of
oil-gathering capacity.
Midstream activities include processing, storing and
transporting of commodities.
-By Amy Or, Dow Jones Newswires; 212-416-3142;
amy.or@dowjones.com
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