El Paso Pipeline Partners Completes Acquisition of Additional Interests in Assets From El Paso Corporation
October 01 2008 - 10:11AM
Marketwired
El Paso Pipeline Partners, L.P. (NYSE: EPB) announced today it has
completed the previously announced acquisition of an additional
30-percent interest in Colorado Interstate Gas Company (CIG) and an
additional 15-percent interest in Southern Natural Gas Company
(SNG) from El Paso Corporation (NYSE: EP) for $736 million. El Paso
Pipeline Partners now owns a 40-percent interest in CIG and a
25-percent interest in SNG.
The transaction was financed with $250 million of debt, and the
issuance of approximately 27.8 million common units. Approximately
26.9 million units were placed with El Paso Corporation, and
approximately 0.9 million units were placed with two private
investors in a transaction under the same previously disclosed
terms. The general partner also purchased 0.6 million general
partner units for $10 million, maintaining its 2-percent
interest.
As a result of the transaction, management intends to recommend
to the Board of Directors of the general partner an increase in the
quarterly cash distribution to $0.32 per unit, beginning with the
distribution to be declared and paid in the first quarter 2009.
El Paso Pipeline Partners, L.P. is a Delaware limited
partnership formed by El Paso Corporation to own and operate
natural gas transportation pipelines and storage assets. El Paso
Corporation owns 83.1 million limited partner units, and 2.3
million general partner units. El Paso Pipeline Partners, L.P. owns
Wyoming Interstate Company, an interstate pipeline system serving
the Rocky Mountain region, and a 40-percent interest in Colorado
Interstate Gas Company which operates in the Rocky Mountain region,
and a 25-percent interest in Southern Natural Gas Company, which
operates in the southeastern region of the United States. For more
information about El Paso Pipeline Partners, visit
www.eppipelinepartners.com.
Cautionary Statement Regarding Forward-Looking Statements
This release includes forward-looking statements and
projections, made in reliance on the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. El Paso Pipeline
Partners has made every reasonable effort to ensure that the
information and assumptions on which these statements and
projections are based are current, reasonable, and complete.
However, a variety of factors could cause actual results to differ
materially from the projections, anticipated results or other
expectations expressed in this release, including, without
limitation, that the amount of cash distributions declared will be
determined on a quarterly basis by the board of directors of our
general partner, in their sole discretion, and will depend on many
factors including El Paso Pipeline Partner's financial condition,
earnings, cash flows, capital requirements, financial covenants,
legal requirements and other factors deemed relevant by the board
of directors of our general partner; and other factors described in
El Paso Pipeline Partners' (and its affiliates') Securities and
Exchange Commission filings. While these statements and projections
are made in good faith, El Paso Pipeline Partners and its
management cannot guarantee that anticipated future results will be
achieved. Reference must be made to those filings for additional
important factors that may affect actual results. El Paso Pipeline
Partners assumes no obligation to publicly update or revise any
forward-looking statements made herein or any other forward-looking
statements made, whether as a result of new information, future
events, or otherwise.
Contacts: Investor-Media Relations Bruce L. Connery Vice
President (713) 420-5855 Media Relations Bill Baerg Manager (713)
420-2906
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