ATLANTA and HOUSTON, Sept. 1,
2016 /PRNewswire/ -- Southern Company (NYSE:SO) and
Kinder Morgan, Inc. (NYSE: KMI) today announced the closing of
their natural gas pipeline venture through Southern Company's
acquisition of a 50 percent equity interest in the Southern Natural
Gas (SNG) pipeline system through a subsidiary of Southern Company
Gas. As previously announced, Kinder Morgan will continue to
operate the system and the companies are pursuing specific growth
opportunities to develop additional natural gas infrastructure for
the strategic venture.
Southern Company, one of the nation's largest natural gas
consumers and distributors, and Kinder Morgan, a recognized leader
in natural gas pipeline development and operations, will work
together to advance both companies' efforts to develop
infrastructure important to America's energy future.
"This strategic venture aligns with Southern Company's
previously discussed infrastructure development strategy and builds
on Southern Company Gas' midstream pipeline experience," said
Southern Company Chairman, President and CEO Thomas A. Fanning. "With our new ownership stake
in Southern Natural Gas we look forward to working with Kinder
Morgan to explore future opportunities to deliver natural gas to
customers."
SNG is an approximately 7,000-mile pipeline system connecting
natural gas supply basins in Texas, Louisiana, Mississippi and Alabama to markets in Louisiana, Mississippi, Alabama, Florida, Georgia, South
Carolina and Tennessee. SNG
is a principal transporter of natural gas to Alabama, Georgia and South
Carolina, which are part of one of the fastest-growing
natural gas demand regions in the United States.
"The Southern Company system has been a valued customer of SNG
for many years and this joint venture is expected to greatly
benefit the shareholders of both companies," said Norman G. Holmes, president of Kinder Morgan
South Region Pipelines. "We are very pleased to begin pursuing the
growth opportunities this strategic relationship should
provide."
As previously disclosed, Kinder Morgan plans to use all of the
proceeds from this transaction to reduce debt at Kinder Morgan.
Jones Day, Gibson Dunn &
Crutcher LLP, Troutman Sanders LLP and Balch & Bingham LLP are
serving as legal counsel to Southern Company, and Bracewell LLP and
Weil, Gotshal & Manges LLP are serving as legal counsel to
Kinder Morgan.
About Kinder Morgan
Kinder Morgan, Inc. (NYSE: KMI) is
the largest energy infrastructure company in North America.
It owns an interest in or operates approximately 84,000 miles
of pipelines and approximately 180 terminals. The
company's pipelines transport natural gas, gasoline, crude oil,
CO2 and other products, and its terminals store
petroleum products and chemicals, and handle bulk materials like
coal and petroleum coke. For more information please visit
www.kindermorgan.com.
About Southern Company
Southern Company (NYSE: SO) is
America's premier energy company, with 44,000 megawatts of
generating capacity and 1,500 billion cubic feet of combined
natural gas consumption and throughput volume serving 9 million
electric and gas utility customers through its subsidiaries.
The company provides clean, safe, reliable and affordable energy
through electric utilities in four states, natural gas distribution
utilities in seven states, a competitive generation company serving
wholesale customers across America and a nationally recognized
provider of customized energy solutions, as well as fiber optics
and wireless communications. Southern Company brands are known for
excellent customer service, high reliability and affordable prices
that are below the national average. Through an industry-leading
commitment to innovation, Southern Company and its subsidiaries are
inventing America's energy future by developing the full portfolio
of energy resources, including carbon-free nuclear, 21st century
coal, natural gas, renewables and energy efficiency, and creating
new products and services for the benefit of customers. Southern
Company has been named by the U.S. Department of Defense and
G.I. Jobs magazine as a top military
employer, recognized among the Top 50 Companies for Diversity by
DiversityInc, listed by Black Enterprise magazine as one of the 40
Best Companies for Diversity and designated a Top Employer for
Hispanics by Hispanic Network. The company has earned a National
Award of Nuclear Science and History from the National Atomic
Museum Foundation for its leadership and commitment to nuclear
development and is continually ranked among the top utilities in
Fortune's annual World's Most Admired Electric and Gas Utility
rankings. Visit our website at
www.southerncompany.com.
Cautionary Statements Regarding Forward-Looking
Information
This release contains forward-looking
statements which are made pursuant to safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements include statements, among other things,
concerning the expected benefits of the transaction, including
future growth opportunities. These forward-looking statements are
often characterized by the use of words such as "expect,"
"anticipate," "plan," "believe," "may," "should," "will," "could,"
"continue", "opportunity" and the negative or plural of these words
and other comparable terminology. Although Southern Company and
Kinder Morgan believe that the expectations reflected in such
forward-looking statements are reasonable, such statements involve
risks and uncertainties and undue reliance should not be placed on
such statements. Certain material factors or assumptions are
applied in making forward-looking statements. Actual results may
differ materially from those expressed or implied in such
statements. Important factors that could cause actual results to
differ materially from these expectations include, among other
things, the following: the possibility that the anticipated
benefits from the transaction cannot be fully realized or may take
longer to realize than expected; the diversion of management time
on transaction-related issues; the impact of legislative,
regulatory and competitive changes; and other risk factors relating
to the energy industry, as detailed from time to time in each of
Southern Company's and Kinder Morgan's reports filed with the
Securities and Exchange Commission.
Additional information about these factors and about the
material factors or assumptions underlying such forward-looking
statements may be found under Item 1.A. in Southern Company's and
Kinder Morgan's Annual Reports on Form 10-K for the fiscal year
ended December 31, 2015 and Southern
Company's Quarterly Report on Form 10-Q for the quarter ended
June 30, 2016. The foregoing list of
important factors that may affect future results is not exhaustive.
When relying on forward-looking statements to make decisions,
investors and others should carefully consider the foregoing
factors and other uncertainties and potential events. All
subsequent written and oral forward-looking statements concerning
the transaction or other matters attributable to Southern Company,
Kinder Morgan or any other person acting on their behalf are
expressly qualified in their entirety by the cautionary statements
referenced above. The forward-looking statements contained herein
speak only as of the date of this release. Neither Southern Company
nor Kinder Morgan undertakes any obligation to update or revise any
forward-looking statement, except as may be required by
law.
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SOURCE Southern Company