KMP to Sell Its One-Third Stake in Express-Platte Pipeline System
HOUSTON--(BUSINESS WIRE)-- Kinder Morgan Energy Partners, L.P. (NYS: 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 United States.
"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. (NYS: 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. (NYS: 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. (NYS: EPB) , along with limited partner interests in KMP, and EPB and shares in Kinder Morgan Management, LLC (NYS: 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.
Kinder Morgan Energy Partners, L.P.
Richard Wheatley, 713-420-6828
Mindy Mills Thornock, 713-369-9490
KEYWORDS: United States North America Canada Texas
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