Jump to Navigation

Top Matters

Kinder Morgan Acquires El Paso Corporation for $38 Billion

October 17, 2011

Kinder Morgan is one of the largest pipeline transportation and energy storage companies in North America, with more than 37,000 miles of pipelines and 180 terminals. These pipelines transport natural gas, refined petroleum products, crude oil, carbon dioxide and more. They also store and handle a variety of products and materials at Kinder Morgan terminals, such as gasoline, jet fuel, ethanol, coal, petroleum coke and steel.

Transaction Value: $38 Billion

Bracewell is representing Kinder Morgan, Inc. (KMI) in its agreement to acquire all of the outstanding shares of El Paso Corporation (EP) for approximately $38 billion, including the assumption of debt outstanding at El Paso Corporation and including the debt outstanding at El Paso Pipeline Partners, L.P. (EPB).  The transaction will create the largest midstream and the fourth largest energy company in North America with an enterprise value of approximately $94 billion and 80,000 miles of pipelines.

The combined enterprise, including the associated master limited partnerships, Kinder Morgan Energy Partners, L.P. (KMP) and El Paso Pipeline Partners, L.P., will represent the largest natural gas pipeline network in the United States, the largest independent transporter of petroleum products in the United States, the largest transporter of CO2 in the United States and the largest independent terminal owner/operator in the United States. 

The transaction was announced on October 17, 2011 and is expected to close in the second quarter of 2012 and is subject to customary regulatory approvals.