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.
Kinder Morgan Cautionary Language:
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.
Brookfield Cautionary Language:
Note: This news release contains forward-looking information within
the meaning of Canadian provincial securities laws and “forward-looking
statements” within the meaning of Section 27A of the U.S. Securities Act
of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of
1934, as amended, “safe harbor” provisions of the United States Private
Securities Litigation Reform Act of 1995 and in any applicable Canadian
securities regulations. The words, “will,” “expect,” “believes,” “may”
or derivations thereof and other expressions which are predictions of or
indicate future events, trends or prospects and which do not relate to
historical matters identify the above mentioned and other
forward-looking statements. Forward-looking statements in this news
release include statements regarding potential growth of NGPL, the
expected completion of the transaction described in this news release
and the anticipated timing thereof, and other statements with respect to
Brookfield Infrastructure’s assets and equity returns. Although
Brookfield Infrastructure believes that these forward-looking statements
and information are based upon reasonable assumptions and expectations,
the reader should not place undue reliance on them, or any other
forward-looking statements or information in this news release. The
future performance and prospects of Brookfield Infrastructure are
subject to a number of known and unknown risks and uncertainties.
Factors that could cause actual results of Brookfield Infrastructure to
differ materially from those contemplated or implied by the statements
in this news release include: general economic conditions; interest rate
changes; availability of equity and debt financing; the performance of
the Units or the stock exchanges generally; legal or contractual issues,
our ability to satisfy conditions precedent required to complete
acquisitions (including without limitation the one mentioned in the news
release), our ability to integrate acquisitions into existing operations
and the future performance of those acquisitions and other risks and
factors described in the documents filed by Brookfield Infrastructure
with the securities regulators in Canada and the United States including
under “Risk Factors” in Brookfield Infrastructure’s most recent Annual
Report on Form 20-F and other risks and factors that are described
therein. Except as required by law, Brookfield Infrastructure undertakes
no obligation to publicly update or revise any forward-looking
statements or information, whether as a result of new information,
future events or otherwise.
