HOUSTON--(BUSINESS WIRE)--Dec. 11, 2012--
Kinder Morgan Energy Partners, L.P. (NYSE: KMP), today announced that it
has entered into a definitive agreement to sell its one-third interest
in the Express-Platte pipeline system to Spectra Energy Corp for
approximately $380 million pre tax. KMP’s joint venture partners in
Canada (Ontario Teachers’ Pension Plan Board and Borealis
Infrastructure, the infrastructure investment arm of the OMERS pension
plan) are also selling their interests in the pipeline system, as
Spectra Energy Corp is purchasing 100 percent of Express-Platte. The
transaction is subject to customary consents and regulatory approvals
and is expected to close in the second quarter of 2013. Express-Platte
is a 1,700-mile oil pipeline system connecting Canadian and U.S.
producers to refineries in the Rocky Mountain and Midwest regions of the
“This is a win-win transaction for both KMP and Spectra Energy Corp,”
said KMP Chairman and CEO Richard D. Kinder. “Spectra Energy Corp is
purchasing a good pipeline system. In exchange, KMP will receive a very
attractive price. Based on the structure of KMP’s investment with our
Express-Platte partners, KMP receives approximately $15 million of cash
flow on an annual basis from this investment, which is primarily
debenture interest. We will redeploy the proceeds from this sale into
various growth projects to further benefit our unitholders. I would like
to thank the Express-Platte and Kinder Morgan Canada employees for their
hard work and outstanding service in operating this pipeline system.”
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 53,000 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, and EPB
and shares in Kinder Morgan Management, LLC (NYSE: KMR). For more
information please visit www.kindermorgan.com.
This news release includes forward-looking statements. These
forward-looking statements are subject to risks and uncertainties and
are based on the beliefs and assumptions of management, based on
information currently available to them. Although Kinder Morgan believes
that these forward-looking statements 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 include
those enumerated in Kinder Morgan’s reports filed with the Securities
and Exchange Commission. Forward-looking statements speak only as of the
date they were made, and except to the extent required by law, Kinder
Morgan undertakes no obligation to update or review any forward-looking
statement because of new information, future events or other factors.
Because of these uncertainties, readers should not place undue reliance
on these forward-looking statements.
Source: Kinder Morgan Energy Partners, L.P.
Kinder Morgan Energy Partners, L.P.
Mindy Mills Thornock, 713-369-9490