Yahoo Finance El Paso strikes $972M deal with Kinder Morgan
El Paso Pipeline Partners buying Kinder Morgan's stake in several natural gas pipelines
HOUSTON (AP) -- El Paso Pipeline Partners L.P. said Monday that it will buy Kinder Morgan Inc.'s stake in several natural gas pipelines in a $972 million deal.
Including debt, the deal is valued at $2 billion. It's expected to increase cash flow for El Paso and reduce Kinder Morgan's debt.
The agreement involves Kinder Morgan's 50 percent interest in Ruby Pipeline, which runs from Wyoming to Oregon; its 50 percent interest in Gulf LNG, a terminal in Pascagoula, Miss.; and a 47.5 percent interest in Young Gas Storage in Morgan County, Colo.
The deal is expected to close in May.
El Paso Pipeline Partners, based in Houston, is a publicly traded pipeline limited partnership that owns an interest in or operates approximately 13,000 miles of interstate natural gas transportation. Its shares increased 36 cents to close at $32.36 and fell 63 cents to $32 in after-hours trading.
Kinder Morgan owns the general partner interests in El Paso Pipeline Partners. Its shares fell 20 cents to close at $32.38 Monday and were unchanged following the after-hours announcement.
