Kinder Morgan in $300m midstream splash

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Eoin O'Cinneide

 25 April 2012 19:38 GMT

Kinder Morgan Partners (KMP) is dishing out a further $300 million to capture the half of a midstream business which it was not destined to own once its purchase of El Paso Corporation is completed.

The deal penned between KMP and an investment vehicle affiliated with Kohlberg Kravis Roberts (KKR) for control of a pair of joint ventures is an all-shares deal.

For $300 million of its common stock, KMP is getting its hands on KKR’s 50% holding in the Altamont gathering, processing and treating assets in the Uinta basin, Utah as well as the Camino Real gathering system in the Eagle Ford Shale, Texas.

The other 50% stakeholder in the two joint ventures is El Paso which KMP agreed earlier this year to acquire for $21 billion.

“With over 1100 miles of pipeline infrastructure,…

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