Kinder Morgan Energy sells some assets

Kinder Morgan Energy Partners LP (KMP) has agreed to sell some of its Rocky Mountain natural-gas processing and pipeline assets to Tallgrass Energy Partners LP for approximately USD 1.8 billion as part of a deal with federal antitrust regulators to allow its recent acquisition of El Paso Corp. to go forward. The assets also include Kinder Morgan Interstate Gas Transmission; Trailblazer Pipeline Co.; the Casper-Douglas natural-gas processing and West Frenchie Draw treating facilities in Wyoming.

“As I previously stated, we would prefer to keep all of these assets, but we anticipated divestiture of certain assets in the Rockies would be necessary to obtain FTC approval,” Chairman and Chief Executive Richard D. Kinder said.

The sale is “one of those steps you have get past to close the deal,” Raymond James analyst Darren Horowitz said, adding that the El Paso acquisition is one that is expected to bring in “very transparent, low-risk organic growth.”

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