Kinder Morgan Energy Partners to sell North System

Jul 02, 2007 02:00 AM

Kinder Morgan Energy Partners has entered into an agreement to sell the North System to ONEOK Partners for approximately $ 300 mm.
The North System consists of an approximately 1,600-mile interstate pipeline system that delivers natural gas liquids and refined petroleum products from Kansas to the Chicago area.

Also included in the sale is KMP's 50 % ownership interest in the Heartland Pipeline Company, seven propane truck-loading terminals along the North System and one multi-product terminal complex in Morris, Illinois. The transaction is subject to standard consents and regulatory approvals and is expected to close in the third quarter.
"This is a win-win transaction for both KMP and ONEOK Partners," said KMP Chairman and CEO Richard D. Kinder. "The North System is a good asset and will be a more strategic fit for ONEOK Partners' natural gas liquids business. In return, KMP receives an attractive price, and we will be able to deploy this capital in areas that are a better strategic fit for us."

The transaction is expected to be accretive to distributable cash flow to KMP unit holders upon closing. Kinder noted he is very pleased that ONEOK Partners has agreed to make offers of employment to all of the North System's approximately 90 employees.
"The North System was one of KMP's original assets, and I would like to thank its employees for contributing to our success and wish them well in their new endeavour."

Source / Kinder Morgan Energy Partners, L.P.
Alexander's Commentary

Change of face - change of phase

In the period of July 20 till August 3, 2015, Alexander will be out of the office and the site will not or only irreg

read more ...
« March 2021 »
March
MoTuWeThFrSaSu
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31

Register to announce Your Event

View All Events