HOUSTON--(BUSINESS WIRE)--Aug. 13, 2012--
Kinder Morgan Energy Partners, L.P. (NYSE: KMP), today announced it has
completed its previously announced acquisition of 100 percent of
Tennessee Gas Pipeline (TGP) and a 50 percent interest in El Paso
Natural Gas (EPNG) pipeline from Kinder Morgan, Inc. (NYSE: KMI). The
approximately $6.22 billion transaction allows KMP to more than replace
cash flow from certain assets it is divesting pursuant to an agreement
KMI reached with the Federal Trade Commission in order to complete the
El Paso Corporation acquisition. The company anticipates that the
combination of the divestitures and the purchase of these assets from
KMI will be slightly accretive to its distributable cash flow in 2012
and nicely accretive thereafter.
TGP is a 13,900-mile pipeline system with a design capacity of about 7.5
billion cubic feet (Bcf) per day. It transports natural gas from
Louisiana, the Gulf of Mexico and south Texas to the northeastern United
States, including the metropolitan areas of New York City and Boston.
EPNG is a 10,200-mile pipeline system with a design capacity of about
5.6 Bcf per day. It transports natural gas from the San Juan, Permian
and Anadarko basins to California, other western states, Texas and
northern Mexico. Combined, TGP and EPNG have more than 200 Bcf of
working natural gas storage capacity.
Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline
transportation and energy storage company and one of the largest
publicly traded pipeline limited partnerships in America. It owns an
interest in or operates approximately 29,000 miles of pipelines and 180
terminals. The general partner of KMP is owned by Kinder Morgan, Inc.
(NYSE: KMI). Kinder Morgan is the largest midstream and the third
largest energy company in North America with a combined enterprise value
of approximately $100 billion. It owns an interest in or operates
approximately 75,000 miles of pipelines and 180 terminals. Its pipelines
transport natural gas, gasoline, crude oil, CO2 and other
products, and its terminals store petroleum products and chemicals and
handle such products as ethanol, coal, petroleum coke and steel. KMI
owns the general partner interest of KMP and El Paso Pipeline Partners,
L.P. (NYSE: EPB), along with limited partner interests in KMP, Kinder
Morgan Management, LLC (NYSE: KMR) and EPB. For more information please
This news release includes forward-looking statements. Although
Kinder Morgan believes that its expectations are based on reasonable
assumptions, it can give no assurance that such assumptions will
materialize. Important factors that could cause actual results to differ
materially from those in the forward-looking statements herein are
enumerated in Kinder Morgan’s Forms 10-K and 10-Q as filed with the
Securities and Exchange Commission.
Source: Kinder Morgan Energy Partners, L.P.
Kinder Morgan Energy Partners, L.P.
Mindy Mills Thornock, 713-369-9490