Kinder Morgan, Brookfield Buying Majority Interest in NGPL

December 2015 Vol. 242, No. 12

Kinder Morgan and Brookfield Infrastructure Partners agreed to jointly acquire, from Myria Holdings, the 53% equity interest in Natural Gas Pipeline Company of America (NGPL) not already owned by them for $242 million.

KMI will pay $136 million and increase its ownership interest from 20% to 50%, while Brookfield will pay $106 million, increasing its ownership from 27% to 50%. The transaction values NGPL at a total enterprise value of $3.4 billion, including existing debt.

NGPL, which will continue to be operated by KMI, is one of the largest interstate pipeline systems in the country, with 9,200 miles of pipeline, more than 1 million hp of compressor facilities and 288 Bcf of working gas storage.

“We are delighted to be strengthening our relationship with Kinder Morgan,” said Sam Pollock, CEO of Brookfield Infrastructure. “We look forward to working together to execute NGPL’s growth strategy to achieve its potential.”

The transaction is expected to close later this year. KMI expects the transaction to be immediately accretive its cash available to pay dividends.

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