ATLANTA & HOUSTON--(BUSINESS WIRE)--Southern Company (NYSE:SO) and Kinder Morgan, Inc. (NYSE:KMI) today
announced the closing of their natural gas pipeline venture through
Southern Company’s acquisition of a 50 percent equity interest in the
Southern Natural Gas (SNG) pipeline system through a subsidiary of
Southern Company Gas. As previously announced, Kinder Morgan will
continue to operate the system and the companies are pursuing specific
growth opportunities to develop additional natural gas infrastructure
for the strategic venture.
Southern Company, one of the nation’s largest natural gas consumers and
distributors, and Kinder Morgan, a recognized leader in natural gas
pipeline development and operations, will work together to advance both
companies’ efforts to develop infrastructure important to America’s
energy future.
“This strategic venture aligns with Southern Company’s previously
discussed infrastructure development strategy and builds on Southern
Company Gas’ midstream pipeline experience,” said Southern Company
Chairman, President and CEO Thomas A. Fanning. “With our new ownership
stake in Southern Natural Gas we look forward to working with Kinder
Morgan to explore future opportunities to deliver natural gas to
customers.”
SNG is an approximately 7,000-mile pipeline system connecting natural
gas supply basins in Texas, Louisiana, Mississippi and Alabama to
markets in Louisiana, Mississippi, Alabama, Florida, Georgia, South
Carolina and Tennessee. SNG is a principal transporter of natural gas to
Alabama, Georgia and South Carolina, which are part of one of the
fastest-growing natural gas demand regions in the United States.
“The Southern Company system has been a valued customer of SNG for many
years and this joint venture is expected to greatly benefit the
shareholders of both companies,” said Norman G. Holmes, president of
Kinder Morgan South Region Pipelines. “We are very pleased to begin
pursuing the growth opportunities this strategic relationship should
provide.”
As previously disclosed, Kinder Morgan plans to use all of the proceeds
from this transaction to reduce debt at Kinder Morgan.
Jones Day, Gibson Dunn & Crutcher LLP, Troutman Sanders LLP and Balch &
Bingham LLP are serving as legal counsel to Southern Company, and
Bracewell LLP and Weil, Gotshal & Manges LLP are serving as legal
counsel to Kinder Morgan.
About Kinder Morgan
Kinder Morgan, Inc. (NYSE: KMI) is the largest energy infrastructure
company in North America. It owns an interest in or operates
approximately 84,000 miles of pipelines and approximately 180 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. For
more information please visit www.kindermorgan.com.
About Southern Company
Southern Company (NYSE: SO) is America's premier energy company, with
44,000 megawatts of generating capacity and 1,500 billion cubic feet of
combined natural gas consumption and throughput volume serving 9 million
electric and gas utility customers through its subsidiaries. The company
provides clean, safe, reliable and affordable energy through electric
utilities in four states, natural gas distribution utilities in seven
states, a competitive generation company serving wholesale customers
across America and a nationally recognized provider of customized energy
solutions, as well as fiber optics and wireless communications. Southern
Company brands are known for excellent customer service, high
reliability and affordable prices that are below the national average.
Through an industry-leading commitment to innovation, Southern Company
and its subsidiaries are inventing America's energy future by developing
the full portfolio of energy resources, including carbon-free nuclear,
21st century coal, natural gas, renewables and energy efficiency, and
creating new products and services for the benefit of customers.
Southern Company has been named by the U.S. Department of Defense and
G.I. Jobs magazine as a top military employer, recognized among the Top
50 Companies for Diversity by DiversityInc, listed by Black Enterprise
magazine as one of the 40 Best Companies for Diversity and designated a
Top Employer for Hispanics by Hispanic Network. The company has earned a
National Award of Nuclear Science and History from the National Atomic
Museum Foundation for its leadership and commitment to nuclear
development and is continually ranked among the top utilities in
Fortune's annual World's Most Admired Electric and Gas Utility rankings.
Visit our website at www.southerncompany.com.
Cautionary Statements Regarding Forward-Looking Information
This release contains forward-looking statements which are made
pursuant to safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements include
statements, among other things, concerning the expected benefits of the
transaction, including future growth opportunities. These
forward-looking statements are often characterized by the use of words
such as “expect,” “anticipate,” “plan,” “believe,” “may,” “should,”
“will,” “could,” “continue”, “opportunity” and the negative or plural of
these words and other comparable terminology. Although Southern Company
and Kinder Morgan believe that the expectations reflected in such
forward-looking statements are reasonable, such statements involve risks
and uncertainties and undue reliance should not be placed on such
statements. Certain material factors or assumptions are applied in
making forward-looking statements. Actual results may differ materially
from those expressed or implied in such statements. Important factors
that could cause actual results to differ materially from these
expectations include, among other things, the following: the possibility
that the anticipated benefits from the transaction cannot be fully
realized or may take longer to realize than expected; the diversion of
management time on transaction-related issues; the impact of
legislative, regulatory and competitive changes; and other risk factors
relating to the energy industry, as detailed from time to time in each
of Southern Company’s and Kinder Morgan’s reports filed with the
Securities and Exchange Commission.
Additional information about these factors and about the material
factors or assumptions underlying such forward-looking statements may be
found under Item 1.A. in Southern Company’s and Kinder Morgan’s Annual
Reports on Form 10-K for the fiscal year ended December 31, 2015 and
Southern Company’s Quarterly Report on Form 10-Q for the quarter ended
June 30, 2016. The foregoing list of important factors that may
affect future results is not exhaustive. When relying on forward-looking
statements to make decisions, investors and others should carefully
consider the foregoing factors and other uncertainties and potential
events. All subsequent written and oral forward-looking statements
concerning the transaction or other matters attributable to Southern
Company, Kinder Morgan or any other person acting on their behalf are
expressly qualified in their entirety by the cautionary statements
referenced above. The forward-looking statements contained herein speak
only as of the date of this release. Neither Southern Company nor Kinder
Morgan undertakes any obligation to update or revise any forward-looking
statement, except as may be required by law.