Kinder Morgan Inc and Brookfield Infrastructure Partners LP have agreed to jointly acquire a 53 percent equity stake in Natural Gas Pipeline Company of America LLC for about $242 million. The seller is Myria Holdings Inc. According to terms of the deal, KMI will pay about $136 million, increasing its stake in NGPL from 20 percent to 50 percent while Brookfield Infrastructure will pay about $106 million, expanding its stake from approximately 27 percent to 50 percent. As a result of the transaction, NGPL, which is one of the largest interstate pipeline systems in the country, has a $3.4 billion valuation.
HOUSTON–(BUSINESS WIRE)–Kinder Morgan, Inc. (NYSE: KMI) and Brookfield Infrastructure Partners L.P. (NYSE: BIP, TSX: BIP.UN) today announced a definitive agreement whereby they will jointly acquire, from Myria Holdings, Inc., the 53 percent equity interest in Natural Gas Pipeline Company of America LLC (NGPL) not already owned by them for a total purchase price of approximately $242 million. KMI will pay approximately $136 million and increase its ownership interest from 20 percent to 50 percent, and Brookfield Infrastructure will pay approximately $106 million and increase its ownership from approximately 27 percent to 50 percent. The transaction values NGPL at a total enterprise value of $3.4 billion, inclusive of existing debt.
NGPL, which is currently operated by KMI, is one of the largest interstate pipeline systems in the country, with approximately 9,200 miles of pipeline, more than 1 million horsepower of compressor facilities and 288 billion cubic feet of working gas storage.
“We are extremely pleased to announce an agreement to acquire full ownership of NGPL in partnership with Brookfield. This partnership ensures that NGPL is positioned to take full advantage of future opportunities to provide natural gas transportation and storage services to its current and future customers,” said KMI Chief Executive Officer Steve Kean.
“We are delighted to be strengthening our relationship with Kinder Morgan,” said Sam Pollock, Chief Executive Officer of Brookfield Infrastructure. “We look forward to working together to execute NGPL’s growth strategy to achieve its potential.”
The transaction is expected to close later this year, and is subject to customary closing conditions, including regulatory approval. KMI will continue to operate NGPL, and expects that the transaction will be immediately accretive to KMI’s cash available to pay dividends.
Evercore acted as strategic advisor to KMI; both Bracewell & Guiliani and Weil, Gotshal & Manges acted as legal counsel to KMI. Cleary Gottlieb Steen & Hamilton acted as legal counsel to Brookfield Infrastructure.
Kinder Morgan, Inc. (NYSE: KMI) is the largest energy infrastructure company in North America. It owns an interest in or operates 84,000 miles of pipelines and approximately 165 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. Kinder Morgan is the largest midstream and third largest energy company in North America with an enterprise value of approximately $100 billion. For more information please visit www.kindermorgan.com.
Brookfield Infrastructure Partners is a leading global infrastructure company that owns and operates high quality, long-life assets in the utilities, transport, energy and communications sectors across North and South America, Australia, Asia and Europe. We are focused on assets that generate stable cash flows and require minimal maintenance capital expenditures. Brookfield Infrastructure Partners is listed on the New York and Toronto stock exchanges. Further information is available at www.brookfieldinfrastructure.com. Important information may be disseminated exclusively via the website; investors should consult the site to access this information.
Brookfield Infrastructure is the flagship listed infrastructure company of Brookfield Asset Management, a leading global alternative asset manager with approximately $225 billion of assets under management. For more information, go to www.brookfield.com.