Kinder Morgan and Brookfield Infrastructure Announce Minority Interest Sale in Natural Gas Pipeline Company of America LLC
February 22 2021 - 4:05PM
Business Wire
Kinder Morgan, Inc. (NYSE: KMI) and Brookfield Infrastructure
Partners L.P. (NYSE: BIP; TSX: BIP.UN) (Brookfield Infrastructure)
today jointly announced that they have agreed to sell a 25%
minority interest in Natural Gas Pipeline Company of America LLC
(NGPL) to a fund controlled by ArcLight Capital Partners, LLC
(ArcLight) for $830 million. The proceeds will be shared equally
between KMI and Brookfield Infrastructure. The value of the
minority interest implies an enterprise value of approximately $5.2
billion for NGPL, which is approximately 11.2 times 2020 EBITDA.
Upon closing, KMI and Brookfield Infrastructure will each hold a
37.5% interest in NGPL, and KMI will continue to operate the
pipeline.
“Kinder Morgan and Brookfield Infrastructure are pleased to
welcome ArcLight into the NGPL joint venture,” said Kinder Morgan
Natural Gas Pipelines President Tom Martin. “We believe this
investment shows the value of natural gas infrastructure both today
and in the decades to come.”
For this transaction, NGPL is served by RBC Capital Markets as
the exclusive financial adviser and King and Spalding as the legal
advisor. Barclays served as the exclusive financial advisor to
ArcLight and has provided a committed debt financing to ArcLight to
support the transaction. Latham & Watkins LLP served as legal
advisor to ArcLight. The transaction is expected to close in the
first quarter of 2021.
NGPL is the largest transporter of natural gas into the
high-demand Chicago-area market as well as one of the largest
interstate pipeline systems in the country. It is also a major
transporter of natural gas to large liquefied natural gas (LNG)
export facilities and other markets located on the Texas and
Louisiana Gulf Coast. NGPL has approximately 9,100 miles of
pipeline, more than 1 million compression horsepower and 288
billion cubic feet (Bcf) of working natural gas storage. NGPL
provides its customers access to all major natural gas supply
basins directly and through its numerous interconnects with
intrastate and interstate pipeline systems.
About Kinder Morgan,
Inc.
Kinder Morgan, Inc. (NYSE: KMI) is one of the largest energy
infrastructure companies in North America. Access to reliable,
affordable energy is a critical component for improving lives
around the world. We are committed to providing energy
transportation and storage services in a safe, efficient, and
environmentally responsible manner for the benefit of people,
communities and businesses we serve. We own an interest in or
operate approximately 83,000 miles of pipelines and 144 terminals.
Our pipelines transport natural gas, refined petroleum products,
crude oil, condensate, CO2 and other products, and our terminals
store and handle various commodities including gasoline, diesel
fuel chemicals, ethanol, metals and petroleum coke. For more
information, please visit www.kindermorgan.com.
About Brookfield Infrastructure
Partners L.P.
Brookfield Infrastructure Partners is a leading global
infrastructure company that owns and operates high-quality,
long-life assets in the utilities, transport, midstream and data
infrastructure sectors across North and South America, Asia Pacific
and Europe. We are focused on assets that have contracted and
regulated revenues that generate stable and predictable cash flows.
Investors can access its portfolio either through Brookfield
Infrastructure Partners L.P. (NYSE: BIP; TSX: BIP.UN), a
Bermuda-based limited partnership, or Brookfield Infrastructure
Corporation (NYSE, TSX: BIPC), a Canadian corporation. Further
information is available at www.brookfield.com/infrastructure.
Brookfield Infrastructure Partners is the flagship listed
infrastructure company of Brookfield Asset Management, a global
alternative asset manager with approximately US$600 billion of
assets under management. For more information, go to
www.brookfield.com.
About ArcLight Capital Partners,
LLC
ArcLight Capital Partners, LLC (ArcLight) is one of the leading
energy infrastructure firms. Founded in 2001, the firm helped
pioneer an asset-based approach to investing in the energy sector.
ArcLight has invested approximately $23 billion in 111 transactions
since inception. Based in Boston, the firm's investment team
employs a hands-on value creation strategy that utilizes its
in-house technical, operational, and commercial specialists, as
well as the firm's 1,500-person asset management affiliate. More
information about ArcLight, and a complete list of ArcLight's
portfolio companies, can be found at www.arclight.com.
Important Information Relating to
Forward-Looking Statements
This news release includes forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995 and Section 21E of the Securities and Exchange Act of 1934.
Generally the words “expects,” “believes,” “anticipates,” “plans,”
“will,” “shall,” “estimates,” and similar expressions identify
forward-looking statements, which are not historical in nature.
Forward-looking statements in this news release include express or
implied statements concerning the transaction, including the
expected closing, its timing and the anticipated benefits, and the
long-term value of natural gas infrastructure. 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 KMI believes that these
forward-looking statements are based on reasonable assumptions, it
can give no assurance as to when or if any such forward-looking
statements will materialize or their ultimate impact on KMI’s
operations or financial condition. Important factors that could
cause actual results to differ materially from those expressed in
or implied by these forward-looking statements include the ability
of the parties to satisfy customary conditions to closing of the
transaction; and the other risks and uncertainties described in
KMI’s reports filed with the Securities and Exchange Commission
(SEC), including its Annual Report on Form 10-K for the year-ended
December 31, 2020 (under the headings “Risk Factors” and
“Information Regarding Forward-Looking Statements” and elsewhere)
and its subsequent reports, which are available through the SEC’s
EDGAR system at www.sec.gov and on KMI’s website at
ir.kindermorgan.com. Forward-looking statements speak only as of
the date they were made, and except to the extent required by law,
KMI undertakes no obligation to update any forward-looking
statement because of new information, future events or other
factors. Because of these risks and uncertainties, readers should
not place undue reliance on these forward-looking statements.
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KINDER MORGAN CONTACTS Katherine Hill Media Relations
(713) 469-9176 newsroom@kindermorgan.com
Investor Relations (800) 348-7320 km_ir@kindermorgan.com
www.kindermorgan.com
BROOKFIELD INFRASTRUCTURE CONTACTS
Media: Claire Holland Senior Vice President,
Communications Tel: (416) 369-8236 Email:
claire.holland@brookfield.com
Investors: Kate White Manager, Investor Relations Tel:
(416) 956-5183 Email: kate.white@brookfield.com
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