kinder morgan puts additional assets in the mlp kinder morgan transfers $ 300 m in assets to mlp
kinder morgan , inc . announced plans to contribute $ 300 million in assets to
kinder morgan energy partners , l . p . , the company ' s master limited
partnership . the largest asset to be contributed is kinder morgan texas
pipeline , formerly midcon texas , a 2 , 600 - mile natural gas pipeline system
that extends from south texas to houston along the texas gulf coast .
other assets include the casper and douglas gas gathering and processing
systems , kmi ' s 50 % interest in coyote gas treating and kmi ' s 25 % interest in
thunder creek gas services . as consideration for the assets , kmi will receive
$ 300 million , 50 % in cash and 50 % in kmp partnership units . kmi expects the
transaction to be completed in the fourth quarter .
" this transaction represents a true win - win for both kmi and kmp , " said
kinder morgan ceo rich kinder . " it is expected to be accretive to cash
available for distribution to kmp ' s unitholders by between 5 - 10 cents in
2001 . the pipeline assets are a good fit for kmp because they complement
existing kmp assets , have long - term contracts in place and offer significant
growth opportunities . " kinder noted that because the mix of consideration
paid will include equity issued to kmi , it will not be necessary to raise
funds for the transaction via a public offering of kmp units .
" kmi will also benefit from the transaction , as it will be able to reduce its
debt by $ 150 million , " kinder said . " additionally , the transaction is
expected to be modestly accretive to kmi ' s earnings per share in 2001 . by
increasing its stake in the master limited partnership , kmi will enjoy
greater participation in the expected future growth of kmp . "
upon closing , kmp will have completed in excess of $ 600 million of
acquisitions in 2000 . in addition , this transaction will boost kmi ' s total
asset contribution to kmp to more than $ 1 billion , far exceeding the original
goal stipulated when kinder morgan merged with kn energy last july .
kinder morgan puts additional assets in the mlp
kinder morgan transfers $ 300 m in assets to mlp
kinder morgan , inc . announced plans to contribute $ 300 million in assets to
kinder morgan energy partners , l . p . , the company ' s master limited
partnership . the largest asset to be contributed is kinder morgan texas
pipeline , formerly midcon texas , a 2 , 600 - mile natural gas pipeline system
that extends from south texas to houston along the texas gulf coast .
other assets include the casper and douglas gas gathering and processing
systems , kmi ' s 50 % interest in coyote gas treating and kmi ' s 25 % interest in
thunder creek gas services . as consideration for the assets , kmi will receive
$ 300 million , 50 % in cash and 50 % in kmp partnership units . kmi expects the
transaction to be completed in the fourth quarter .
" this transaction represents a true win - win for both kmi and kmp , " said
kinder morgan ceo rich kinder . " it is expected to be accretive to cash
available for distribution to kmp ' s unitholders by between 5 - 10 cents in
2001 . the pipeline assets are a good fit for kmp because they complement
existing kmp assets , have long - term contracts in place and offer significant
growth opportunities . " kinder noted that because the mix of consideration
paid will include equity issued to kmi , it will not be necessary to raise
funds for the transaction via a public offering of kmp units .
" kmi will also benefit from the transaction , as it will be able to reduce its
debt by $ 150 million , " kinder said . " additionally , the transaction is
expected to be modestly accretive to kmi ' s earnings per share in 2001 . by
increasing its stake in the master limited partnership , kmi will enjoy
greater participation in the expected future growth of kmp . "
upon closing , kmp will have completed in excess of $ 600 million of
acquisitions in 2000 . in addition , this transaction will boost kmi ' s total
asset contribution to kmp to more than $ 1 billion , far exceeding the original
goal stipulated when kinder morgan merged with kn energy last july .