Buyout shop Kohlberg Kravis Roberts & Co. plans to invest as much as $625 million in a partnership with El Paso Corp., an energy company, Reuters reported. The deal will focus on developing natural gas processing plants and pipelines. The private equity firm will pay $125 million for a 50% stake in El Paso’s Altamont gas gathering and processing assets, Reuters said. The firm will spend up to $500 million more for future projects.
(Reuters) – Private equity firm Kohlberg Kravis Roberts & Co will invest up to $625 million in a partnership with energy company El Paso Corp to develop natural gas processing plants and pipelines, the companies said.
KKR will invest $125 million for a 50 percent stake in El Paso’s Altamont gas gathering and processing assets, which serve El Paso’s development of the gas producing fields.
KKR will also spend up to $500 million in future projects such as the Marcellus Ethane Pipeline System in the Marcellus shale and the Camino Real Pipeline in the Eagle Ford shale, two of the fastest growing gas fields in the country.
Shares of El Paso rose about 2 percent in premarket trade to $14.10.
(Reporting by Matt Daily, editing by Dave Zimmerman)