Kinder Morgan to Purchase Stagecoach Gas Services
01 June 2021 - 11:05PM
Business Wire
$1.225 Billion acquisition includes 4
natural gas storage facilities and 3 pipelines serving Northeast
market demand and Marcellus supply
Kinder Morgan, Inc. (NYSE: KMI) today announced that it has
agreed to acquire Stagecoach Gas Services LLC (Stagecoach), a
natural gas pipeline and storage joint venture between Consolidated
Edison, Inc. (NYSE: ED) and Crestwood Equity Partners LP (NYSE:
CEQP). Stagecoach consists of 4 natural gas storage facilities with
a total FERC-certificated working gas capacity of 41 billion cubic
feet and 185 miles of natural gas pipelines with multiple
interconnects to major interstate natural gas pipelines, including
Tennessee Gas Pipeline (TGP), a KMI subsidiary. The transaction
requires regulatory approval under Hart-Scott-Rodino, and it is
expected to close in the third quarter of 2021.
“Acquiring Stagecoach will enhance our service to customers in
this part of the country,” said KMI’s President of Interstate
Natural Gas Pipelines Kimberly S. Watson. “These natural gas
pipeline and storage facilities help connect natural gas supply
sources and Northeast demand areas. Natural gas has long been
responsible for providing heat and hot water to homes and
businesses in the Northeast, and it now has an increasingly vital
role as a reliable, low emissions partner backing up growing
renewable power generation. We look forward to integrating these
facilities into our suite of existing assets in the region.”
KMI expects the investment to be immediately accretive to its
shareholders. The $1.225 billion purchase price represents
approximately 10 times Stagecoach 2020 EBITDA that, with synergies,
is expected to improve to a high single-digit EBITDA multiple.
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,
jet fuel, chemicals, ethanol, metals and petroleum coke. For more
information, please visit www.kindermorgan.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 proposed transaction, including
the parties’ ability to satisfy customary conditions to closing
(such as with respect to required regulatory approvals) and the
anticipated timing and benefits to KMI’s business and stockholders.
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 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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version on businesswire.com: https://www.businesswire.com/news/home/20210601005529/en/
KINDER MORGAN CONTACTS
Melissa Ruiz Director, Corporate Communications (713) 369-8060
newsroom@kindermorgan.com
Investor Relations (800) 348-7320 km_ir@kindermorgan.com
www.kindermorgan.com
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