Kinder Morgan, Inc. (KMI: Quote) announced the completion of its acquisition of El Paso Corp. (EP), which was announced in October of 2011.
Combining the two companies makes Kinder Morgan the largest midstream and the fourth largest energy company in North America. Under the terms of the agreement, the transaction will be effective on May 25, 2012.
"We are delighted to close the El Paso transaction and we are very excited about the natural gas footprint that we now have in the United States with the addition of approximately 44,000 miles of natural gas pipelines from El Paso," Richard D. Kinder, chairman and CEO of Kinder Morgan stated.
The company said that the approximately $7.15 billion sale of El Paso's exploration and production business to affiliates of Apollo Global Management, LLC and others, which was announced in late February, has also closed. As previously announced, El Paso's net operating loss carryforwards will largely offset taxes associated with the sale of the exploration and production business, and thus almost the entire proceeds from this sale will be used to reduce substantially the debt incurred by KMI to fund the cash portion of its purchase of El Paso.
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by RTT Staff Writer
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